The Big Three automakers collectively lost several billion dollars as a result of the strike by the United Auto Workers (UAW) that ended over the course of three separate deals this past week, according to The Wall Street Journal.
The strikes by the UAW at a number of plants at the Big Three automakers — Ford, Stellantis and General Motors — ended this past week with the companies striking tentative deals on Wednesday, Saturday and Monday, respectively, ending their six-week strike. The automakers collectively lost over $5 billion in revenue as a result of the strike, with Stellantis faring the worst of the three, according to the WSJ. (RELATED: Union Bosses Bicker Over Israel-Hamas Conflict: REPORT)
“In the first half of this year, Stellantis emerged as the industry leader for [adjusted operating income], AOI margin, and Industrial Free Cash Flows among its comparable peers,” Natalie Knight, CFO of Stellantis, said in the company’s third quarter earnings report. “Today, we are focused on maintaining our momentum by delivering industry-leading profitability and cash flows, addressing critical near-term industry challenges, and continuing our electrification and technology transformation.”
Stellantis reported that work stoppages in its third quarter from the UAW and the Canadian union Unifor resulted in a loss of around $3.2 billion compared to expected production, according to the company’s third quarter report. Despite the loss, the company’s net revenues increased 7% year-over-year for the quarter.
GM had the smallest loss of the automakers, reporting $800 million in profit losses, while Ford reported $1.3 billion in losses, according to the WSJ. The strike put a total of 45,000 workers on the picket line by the end as the union expanded to more facilities.
We have a tentative agreement at GM.#StandUpUAW pic.twitter.com/UtaWZJurEW
— UAW (@UAW) October 30, 2023
All the automakers ultimately reached similar tentative deals with the union, agreeing to a 25% increase in base wages and a return of cost-of-living adjustments in a deal that will last through April 2028, according to the union. The individual deals also included specific provisions, like GM expanding its contract to cover electric vehicle and battery plant workers.
The union workers still have to vote on the tentative agreements, which could be rejected and lead workers to continue their strike, similar to the contract negotiation between UAW and Mack Trucks in early October. Around 4,000 UAW workers at Mack Trucks walked off the job after 73% of workers voted against a deal reached by the company and union leadership.
GM and the UAW did not immediately respond to a request to comment from the Daily Caller News Foundation, and Ford and Stellantis directed the DCNF to their third quarter earnings report.
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