DETROIT (Michigan News Source) – The six-week United Auto Workers strike against the Detroit Big 3 may have solidified better pay and benefits for workers, but it hung a hefty price tag around the necks of automakers.
General Motors says its pretax earnings took a $1.1 billion hit this year from the strike. It expects to absorb the costs of a new contract and is raising its dividend. The company now predicts full-year net income of more than $9.1 billion, down from its previous outlook. GM said it expects to generate more cash for the full year.
MORE NEWS: Grand Haven Coast Guard Festival Underway
Stellantis, the maker of Chrysler and Jeep, said the strike cost the company $3.2 billion. Ford Motor Co. said the company had been hit with $1.3 billion in costs from the strike.
In other union news, Blue Cross Blue Shield of Michigan and the United Auto Workers union reached a tentative contract agreement. The deal is expected to be formalized on Wednesday. Blue Cross said the new contract would improve pay, benefits and job security for workers. UAW workers at Blue Cross Blue Shield of Michigan walked off the job to strike on Sept. 13, which is around the same time auto workers hit the picket line.
Meanwhile, two-thirds of Detroit’s striking casino workers are back at the blackjack tables. MotorCity and Hollywood Casino at Greektown reached deals last week. MGM Detroit workers voted against a tentative deal and remain on strike.
Leave a Comment
COMMENTS POLICY: We have no tolerance for messages of violence, racism, vulgarity, obscenity or other such discourteous behavior. Thank you for contributing to a respectful and useful online dialogue.