The United Auto Workers (UAW) union has escalated its strike action, pulling 5,000 workers from the Arlington Assembly plant, which is General Motors' (GM) largest facility and primary profit generator.
This move by the union is a response to what they perceive as a need for General Motors to enhance their compensation offer, especially in light of the recent robust quarterly profits.
The Arlington plant in Texas specializes in producing some of GM's most lucrative vehicles, including the Chevy Tahoe, Chevy Suburban, GMC Yukon, and Cadillac Escalade.
UAW Union: GM Workers Need to Receive Fair Share of the Profits
GM CEO Mary Barra earlier underscored the importance of sport utility vehicles, exemplified by those produced in Arlington, as an essential foundation for the company, facilitating consistently robust pricing and margins, according to AFP.
This development follows GM's announcement of impressive third-quarter profits, which exceeded expectations at $3.1 billion, showcasing that the strike has had a limited impact on the automaker's financial performance.
CHICAGO, ILLINOIS - OCTOBER 7: UAW members attend a rally in support of the labor union strike at the UAW Local 551 hall on the South Side on October 7, 2023 in Chicago, Illinois.
UAW President Shawn Fain announced on Tuesday the walkout of 5,000 workers from the Arlington Assembly plant. He expressed the sentiment of many workers, saying, "Another record quarter, another record year. As we've said for months: record profits equal record contracts."
Fain also emphasized the need for GM workers and the broader working class to receive their fair share of the profits. Despite GM's substantial profits of $10 billion over the last nine months, accompanied by consecutive quarters of revenue records, the UAW deems the company's offer as falling short in recognizing the contributions of its members.
The union said that GM's proposal lags behind Ford's, including a two-tier wage progression, a less substantial 401(k) contribution, and an inadequate COLA, among other perceived deficiencies.
This strike marks an unprecedented event in UAW history, as it's the first time the union has simultaneously struck against all three major automakers. Instead of all 150,000 UAW autoworkers participating at once, select locals have been designated to "Stand Up" and strike, a strategic move aimed at maximizing impact.
Read Also: Stellantis Cancels Planned Presentation at CES 2024 Tech Show Amid UAW Strike
UAW Union Strike Approaches Six-Week Mark
Since its inception on September 15, the strike has progressively gained momentum, expanding from three assembly plants across Michigan, Missouri, and Ohio to eight assembly plants and 38 parts distribution centers across 22 states.
As the strike approaches the six-week mark, more than 45,000 UAW members are now participating in this collective action. This move by the UAW is part of their ongoing effort to secure contracts that provide workers with a fair share of the considerable profits generated by the automotive industry.
"Ford, GM and Stellantis made a quarter-trillion dollars in North American profits over the last decade. They made a combined $21 billion in total profits in just the first six months of this year. And yet all of them are still refusing to settle contracts that give workers a fair share of the record profits they've earned," the UAW said in a press release.
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