The UAW has expanded its strike against General Motors to include workers at the Arlington Assembly plant, which builds profitable full-size SUVs. This move came shortly after GM reported third-quarter earnings and the union criticized the company’s offer as inadequate.
Approximately 5,000 employees at the Arlington Assembly plant, known for producing Cadillac Escalade, Chevrolet Tahoe, Suburban, and GMC Yukon SUVs, walked off the line. These models are highly profitable for GM, and the strike will likely impact the company’s earnings and ability to meet demand when production resumes.
The UAW expanded the strike because they believe GM’s latest offer does not adequately reward its workers. They argue that GM’s offer lags behind Ford’s and contains various shortcomings, including a two-tier wage progression, a weak 401(k) contribution, and a deficient COLA.
GM has criticized the strike as an “escalation” of an “unnecessary and irresponsible strike.” The company contends that the strike is harming employees, dealers, suppliers, and communities. GM claims they offered the UAW a comprehensive proposal that increased their previous offers by approximately 25% in total value, with a majority of workers making a significant hourly wage by the end of the agreement’s term.
The timing of the expanded strike coincided with GM reporting third-quarter revenues of $44.1 billion and a net income of $3.1 billion. The UAW sees these profits as evidence that GM can afford to meet their demands.
As negotiations continue, the UAW’s expansion of the strike may influence GM’s willingness to come to an agreement that satisfies the union’s demands. The strike’s impact on production and profits will also be closely monitored as the situation unfolds.