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Home / Business / UAW strike costs $ 2 billion, can "bring GM to its knees"

UAW strike costs $ 2 billion, can "bring GM to its knees"



United Auto Workers members on strike picket outside General Motors & # 39; Detroit-Hamtramck assembly plant on September 25, 2019 in Detroit.

Michael Wayland / CNBC

The strike by workers from General Motors has cost about $ 2 billion over the first four weeks, Bank of America estimates, saying that the beginning of week five means "everyone hurts."

"A prolonged strike may burn significant cash and bring GM to its knees, but investors will also likely react negatively if management is perceived to have plunged into labor demands and GM's long-term competitiveness is under threat," said Bank of America analyst John Murphy in a note to investors Tuesday.

The strike from the United Automobile Workers Union costs GM about $ 1

00 million in lost earnings before interest and taxes per day, Bank of America estimated. The company also noted that the total lost profits have cost each GM worker as much as $ 4,000 in net home pay.

Negotiations continue. The union called local leaders to Detroit to meet Thursday for an update on the negotiations. The union has traditionally done this when a tentative agreement is reached or, as was the case a month ago, to discuss and vote on other actions such as a strike.

– CNBC's Michael Bloom [19659008] and Michael Wayland contributed to this report.


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