The UAW strike has cost General Motors (NYSE:GM) over $500 million in profits but it seems that parties have reached a possible turning point in the negotiations. The parties could reach a deal by this weekend as discussions enter a pivotal point.
GM loses $544 million in profits following the strike
On Wednesday the VP of UAW’s GM department, Terry Dittes indicated that they had submitted proposals the company regarding the unsettled issue and they are waiting for a response. Dittes indicated that they will continue with negotiations until they reach an agreement that addresses the concerns of union members.
GM has lost a lot following the strike with HIS Markit analysts indicating that it has cost the company over 8,000 cars per day. A vehicle averages $8,000 in earnings before taxes and earnings and the strike has affected 9 production days. This has cost the company around $544 million in profit which could hit $700 million if the parties don’t reach an agreement before Sunday.
Strike receives support from top Democratic Party presidential candidates
Around 500,000 workers have been on strike since September 15 when discussions stalled following the expiration of the last UAW contract. The strike has gained nationwide media support and from top politicians. Democratic presidential candidates Joe Bide, Bernie Sanders and Elizabeth Warren have voiced their support for the labor force.
On Sunday Senator Elizabeth Warren tweeted that the UAW is fighting for good benefits and fair wages for workers and that she is behind them. She added that when unions win so do all workers. The union is advocating for better pay for their General Motors workers who they hold should get a larger portion of the company’s profits. They indicate that the company’s North America sector generated net revenue of over $35 billion in the past three years.
On September GM made proposals to the UAW which included more than 5,000 new jobs plus a 2% pay rise. The union rejected the offer terming the raise as very small and the offer did not consider temporary workers.