10/25/23 - UAW Orders Huge Plant In Texas To Strike

Wednesday, October 25, 2023 at 9:43 AM

GM Suburban SUV - image: Cars.com

Another 5,000 UAW workers are ordered to go out on strike in Texas.

DETROIT, Mich. - More than 45,000 United Auto Worker members are now on strike. Another 7,000 have been laid off due to ripple effects from those strikes.

Tuesday, the United Auto Workers expanded its ongoing strike to one of General Motors' most profitable factories in North America: Arlington Assembly Plant in Texas.

The union ordered about 5,000 members at that plant . GM builds its profitable Chevrolet Tahoe and Suburban, Cadillac Escalade and GMC Yukon big SUVs at Arlington.

Arlington is a significant hit because GM builds the big SUVs only at this location. GM has invested nearly $2 billion in Arlington Assembly since 2015, including $500 million earlier this year to upgrade the plant to build future gasoline-powered SUVs.

Yesterday GM said the strike so far has had an incremental $600 million hit to its earnings before interest and taxes and moving forward it estimated the impact of the strike to be about $200 million per week based on the facilities on strike as of Sunday.

UAW President Shawn Fain said workers deserve better pay and will hold out for more. All three automakers have offered a 23% wage increase across the life of the contract. On Monday, the UAW said Stellantis lags GM and Ford Motor Co., included cost-of-living adjustment, progression time to the top wage, profit-sharing and wages for temporary employees, as well as offerings to retirees.

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