NewsNationalScripps News

Actions

Stellantis says UAW strike cost over $3 billion

Although the company took a multi-billion-dollar loss due to the strike, Stellantis netted over $11 billion in profits from January to July.
Stellantis says UAW strike cost over $3 billion
Posted at 5:20 AM, Oct 31, 2023

As United Auto Workers members are returning to work after a six-week strike that shut down production at three major automakers, Stellantis, the maker of Chrysler and Jeep, said the strike cost the company $3.2 billion. 

The company released its quarterly earnings on Tuesday. Company leaders are expected to hold a call with investors later Tuesday and answer additional questions on the status of the company's finances. 

In the third quarter of 2023 (July-September), Stellantis had over $48 billion in net revenue, an increase of 7% over the prior year. The company saw its number of shipments grow 11% in the third quarter of 2023 compared to 2022. 

But what the company will have to answer questions on is how the newest labor contract will affect its bottom line. 

SEE MORE: UAW strike to end after reaching tentative agreement with GM

According to the United Auto Workers, unionized Stellantis workers will get a 25% pay raise between now and April 2028. Starting wages will increase 67% to over $30 an hour. Temporary workers, who the UAW says are the lowest paid, will have a nearly 167% raise over the next four and a half years. 

UAW said record profits by major automakers should result in record contracts for workers. The company reported over $11 billion in net profit in the first half of 2023, which was up 37% compared to the prior year. 

For all of 2022, the company posted net profits of over $17 billion, an increase of 26% over the prior year.


Trending stories at Scrippsnews.com