The UAW has expanded their strike against General Motors in a move seemingly developed to overshadow the company’s third quarter earnings.

Starting with the strike, roughly five,000 personnel at Arlington Assembly walked off the line this morning. The plant builds complete-size SUVs like the Cadillac Escalade, Chevrolet Tahoe / Suburban, and GMC Yukon.

These models are very lucrative for GM, so the lack of production will hit their bottom line quite tough after current inventory dries up. Furthermore, even when production ultimately resumes, the organization will most likely have a tough time catching up to demand.

More: UAW Strike Expands To Hit Popular Ford And GM SUVs, Ford CEO Calls Move ‘Grossly Irresponsible’

 UAW Hits GM Hard: Strikes At Chevy Tahoe And Cadillac Escalade Plant

The union stated the move came following GM’s newest provide failed to “reward UAW members for the profits they’ve generated.” They added “GM’s offer lags behind Ford, with the company proposing a two-tier wage progression, the weakest 401(k) contribution offer on the table, a deficient COLA, and other shortcomings.”

The timing wasn’t a coincidence as the move came shortly following GM reported third-quarter revenues of $44.1 (£36.two / €41.six) billion and a net earnings of $three.1 (£2.five / €2.9) billion. The union thinks this is proof the organization can afford to meet their demands and UAW President Shawn Fain stated, “Another record quarter, another record year. As we’ve said for months: record profits equal record contracts.”


GM slammed the move and referred to as it an “escalation” of an “unnecessary and irresponsible strike.” The automaker added the strike is “harming our team members, who are sacrificing their livelihoods, and having negative ripple effects on our dealers, suppliers, and the communities that rely on us.”

 UAW Hits GM Hard: Strikes At Chevy Tahoe And Cadillac Escalade Plant

The organization stated they gave the union a “comprehensive offer” final week that “increased the already substantial and historic offers we have made by approximately 25% in total value.” GM CEO Mary Barra alluded to this in her letter to shareholders, which referred to as the provide the “most significant that GM has ever proposed to the UAW.” The letter went on to say a majority of their workforce would be producing $40.39 (£33.20 / €38.13) per hour, or roughly $84,000 (£69,050 / €79,298) a year, by the finish of this agreement’s term.”

That’s a lot of cash and the automaker stated “It is time for us to finish this process, get our team members back to work, and get on with the business of making GM the company that will win and provide great jobs in the U.S. for our people for decades to come.”

 UAW Hits GM Hard: Strikes At Chevy Tahoe And Cadillac Escalade Plant