UAW Strikes Hit General Motors Plant in Texas as Automakers’ Cash Cows Targeted
Around 5,000 workers at a General Motors (GM) factory in Arlington, Texas, which produces high-margin SUVs like the Chevrolet Tahoe and Cadillac Escalade, have gone on strike. This comes after similar strikes at a Ford factory in Kentucky and a Stellantis plant making Ram pickups in Michigan. The acts of protest aim to pressure the automakers into meeting the union’s demands for better wages and benefits. The strikes in Texas are expected to have a significant impact on GM’s profits, with the potential to cost the company $800 million this year and an additional $200 million per week. If the strikes continue or spread to other plants, the losses will grow further.
Despite the ongoing strikes, GM reported net income of just over $3 billion for the third quarter, which beat Wall Street estimates but was 7% lower than the previous year due to the strike and increased warranty costs.
In other news, Wall Street saw a rise after companies, including Verizon, reported higher-than-expected profits. The hope is that these positive earnings will contribute to the S&P 500’s first growth in a year. However, oil prices saw a significant drop.
Meanwhile, Meta Platforms (formerly Facebook) is facing legal action from several US states. The lawsuit alleges that Meta knowingly designed features on Instagram and Facebook that addict children to the platforms, contributing to the youth mental health crisis. The lawsuit also claims that Meta collects data on children under 13 without their parents’ consent, in violation of federal law.
Further, California regulators have suspended a recently approved robotaxi service owned by GM after they determined the service’s driverless cars to be a safety hazard. The suspension was imposed as the driverless vehicles were found to impede traffic during emergencies.
Aviation experts are raising questions about the threat posed by insiders in the industry following an incident in which an off-duty pilot attempted to disable a jetliner midflight. While these incidents are rare, they highlight the challenge airlines face in identifying potential security threats among their employees who have access to restricted areas.
Spain’s acting government is pushing for a shorter workweek of 37½ hours, down from the current 40-hour workweek. The proposal forms part of their efforts to remain in power following an inconclusive election earlier this year.
In Iceland, women led a strike on Tuesday to demand an end to unequal pay and gender-based violence. The strike, which echoes Iceland’s first women’s strike in 1975, saw schools and shops close as women and nonbinary people refused both paid and unpaid work.
Coca-Cola has raised its full-year revenue forecast after reporting better-than-expected third quarter results. The company’s net revenue grew by 8% to $11.9 billion, surpassing Wall Street estimates. Coca-Cola’s global case volumes also rose by 2% for the July-September period.
As the strikes against Detroit’s automakers continue, questions are being raised about the endgame of the United Auto Workers union leader, Shawn Fain. While Fain has been vocal about the workers’ demands, some analysts and striking workers are wondering if he has a plan to bring the strikes to a close.
In conclusion, the ongoing strikes at GM’s Texas plant and the other automakers’ factories, along with other relevant news stories, highlight the current challenges and demands faced by workers in various industries, spanning from the automotive sector to technology and gender equality.
