United Auto Workers (UAW) bosses called a strike Saturday night as they held out for more, more more from General Motors (GM). About 48,000 UAW members walked out Saturday evening. Bank of America analysts predict the strike could cost GM as much as $90 million per day. As a result, GM shares are down nearly 3% today based on analysts’ predictions.
Michael Wayland has the story on cnbc.com.
“No contract, no cars!” chanted dozens of workers outside GM’s Detroit-Hamtramck Assembly, on the outskirts of the city. Others yelled, “No more tiers,” in reference to the current pay structure of UAW workers that includes an eight-year grow-in period to reach top hourly pay levels.
Several union members walking the picket line say they just want a “fair deal” from the automaker. Some said that includes better pay amid the company’s record profits. Others said it’s about keeping Detroit-Hamtramck and three other U.S. plants for GM, including Lordstown Assembly in Ohio, open after the automaker announced plans last year to potentially shutter the facilities.
GM shares were down nearly 3% Monday as analysts estimated the strike could cost GM tens of millions of dollars per day. The two sides resumed talks at 10 a.m. Monday after failing to reach a deal before the current contracts expired Saturday night.
“From a bottom line standpoint, the impact could potentially be nominal if the strike is resolved quickly; yet, the longer it lasts, the more it will be felt in GM’s earnings profile,” wrote Credit Suisse’s Dan Levy in a note Monday, estimating the impact of the strike at roughly $50 million per day. Analysts at Bank of America estimated in a research note the cost of the strike at up to $90 million a day.
UAW Vice President Terry Dittes, standing with the union’s bargaining team, announces a strike against General Motors during a press conference Sept. 15 in Detroit. The strike will take effect at
Many people picketing outside the Detroit-Hamtramck plant weren’t GM workers but fellow union members from nearby Fiat Chrysler plants. They came out to support the roughly 48,000 members with GM who went on strike effective 11:59 p.m. Sunday. The UAW is negotiating contracts with all three Detroit automakers, GM, Ford and Fiat Chrysler, on behalf of 158,000 members. It’s striking against GM because it’s the lead negotiator, meaning whatever agreement it reaches will set the tone for talks with the other two automakers.
“We have several locals, several unions, several plants out here,” UAW Local 1700 President Louie Pahl yelled to the crowd shortly after midnight. “One solidarity. One union. We want a good contract. Let’s walk these lines.”