Over the last 24 hours, the United Auto Workers labor strike against American auto plants escalated, expanding from 34,000 on strike to 46,000. Yesterday, 6,800 employees at Stellantis’ Sterling Heights Assembly Plant in Detroit surprised the company by joining the strike, and today, around 5,000 employees at GM’s SUV factory in Arlington, Texas, walked off their jobs. Last week, UAW President Shawn Fain, dissatisfied with the five weeks of negotiations with GM, Ford, and Stellantis, had threatened more strikes. Fain’s Oct. 20 statement objected, in particular, to Stellantis acting to undercut of workers’ medical coverage.
The union appears to be targeting the most profitable of the auto plants, those making pickup trucks and SUVs. As of yesterday, the stocks in GM and Ford had fallen 23 and 27%, respectively, over the six weeks. Stock in Stellantis has held steady, but yesterday company spokesmen said that they were “outraged” over the walkout. Otherwise, GM CEO Mary Barra said this morning that management won’t agree to a contract that jeopardizes the company’s future.
