American arms dealers have gathered ‘record profits’ from Israel’s wars on the besieged Gaza Strip and Lebanon, according to a new report.
In a report released on Wednesday, the Quincy Institute for Responsible Statecraft, an American think tank focused on US foreign policy, revealed that US arms manufacturers have outperformed major stock indexes this year, driven by increased arms sales to Israel for its Gaza war and the aggression against Lebanon.
According to the report, stock funds invested in the US aerospace and defence industry, including companies like Boeing, Lockheed Martin, RTX, General Dynamics, Northrop Grumman, and L3Harris, saw profits exceed expectations this year, outperforming the S&P 500 index.
Responsible Statecraft said: ‘That handout of taxpayer funds to Israel coupled with Israel’s, and global, demand increasing for weapons in a period of instability, has been jet fuel for stock prices.’
The findings also revealed that Lockheed Martin, the manufacturer of the F-35 aircraft utilised by Israel to continuously bombard Gaza, Lebanon, Syria, and Yemen, achieved a total return of 54.86 per cent from October 7, 2023, to the same date in 2024, exceeding the S&P 500 by 18 per cent.
RTX, the manufacturer of 2,000-pound ‘bunker buster’ bombs that have reduced much of Gaza to rubble and are currently being deployed on the Lebanese capital Beirut, reported a total return of 82.69 per cent for investors over the past year, beating the S&P 500 by 46 per cent.
Both Lockheed Martin and RTX shares booked all-time highs on Tuesday, while L3Harris and Northrop Grumman tallied their top share price since 2022.
General Dynamics, known for producing bunker busters and the BLU-109 bombs used by Israel to demolish several apartment buildings in southern Beirut during the assassination of Hezbollah Secretary General Sayyed Hassan Nasrallah, gained a total return of 37 per cent for investors, exceeding the S&P 500 by just over 3 per cent.
The Stockholm International Peace Research Institute (SIPRI) reports that from 2019 to 2023, Israel represented 2.1 per cent of total global arms imports. During this time frame, the US supplied 69 per cent of Israel’s arms imports, while Germany provided 30 per cent.
While Washington continues to be the dominant player in the global arms market, accounting for 42 per cent of sales, it has also markedly increased its military expenditures to support Israel, exceeding $23 billion within a single year.
Meanwhile, on Thursday night, a super-majority of UAW members at Stellantis’ Los Angeles Parts Distribution Centre voted to request strike authorisation from the International Executive Board if the company and union can’t settle the grievance over the company’s refusal to meet contractually required investments in America.
They are the first UAW members at Stellantis to hold such a vote since they began filing grievances against the company in August.
The branches have charged Stellantis with violating product and investment commitments in the current contract. As the grievances proceed, more UAW local branches at Stellantis could be holding strike authorisation votes soon.
UAW President Shawn Fain said: ‘Stellantis made a contractual promise to invest in America and we are not going to let them weasel out of it.
‘Our members won those investments during the Stand Up strike, and we will strike again to make Stellantis keep the promise if we have to.’
In the UAW’s 2023 contract, the union won $19 billion in investment commitments, securing a future for tens-of-thousands of union members in the United States.
The UAW also made history by winning the right to strike if the company fails to fulfil those commitments. A year into the collective bargaining agreement, the company has put forward investment plans equal to only about 2 per cent of the $19 billion in commitments, and is now publicly backtracking on its commitments to reopen the idled assembly plant in Belvidere, Illinois, and to build the Dodge Durango in Detroit.
Fain added: ‘If Stellantis can give CEO Carlos Tavares a 56 per cent raise and spend billions lavishing rich shareholders with stock buy-backs and dividends, then they sure as hell have the money for productive investments in our plants,’ said Fain.
‘Stellantis is trying to intervene in the union’s constitutional strike authorisation process.
‘This week, the company has been making calls to tens of thousands of UAW members across the country telling them to vote ‘no’ on strike authorisation.
‘Yesterday’s overwhelming ‘yes’ vote at the Los Angeles parts centre, shows members are ready to fight and that Stellantis’ campaign is backfiring. The company has additionally filed frivolous suits in federal court to try and stop UAW members from utilising their contractual right to strike over the company’s broken promises.
‘Carlos Tavares is being sued by suppliers and shareholders, the national dealers network is up in arms against him, and he is now facing down a strike from the mighty UAW.
‘If an autoworker in the plant did as poor of a job as Tavares, they would be fired.’
Elsewhere, Amazon Teamsters at the company’s DCK6 warehouse in San Francisco held a demonstration on Wednesday evening demanding that the company recognises the union.
Peter Finn, Teamsters Western Region International Vice President and President of Teamsters Joint Council 7 said: ‘California Teamsters know what it means to go up against some of the country’s biggest tech giants, stand our ground, and win – and it’s no different for Amazon workers at DCK6.
‘The truth is that this is a losing battle for Amazon. Despite the millions of dollars Amazon is funnelling into union busting, when thousands of workers start coming together across all corners of the country to demand a voice and a fair paycheck, Goliath doesn’t stand a chance.’
Warehouse workers at UNFI in Atlanta have voted overwhelmingly to join Teamsters Local 728.
The group of 208 warehouse workers organised with the Teamsters to secure fair pay, better health care, and improved working conditions.
Fernando Woods, a UNFI worker and a new member of Local 728 said: ‘We organised with the Teamsters to secure a more stable future for our families.
‘This victory will transform our jobs into careers, and we look forward to beginning negotiations for our first union contract.’
Matt Higdon, President of Local 728 said: ‘I am proud to welcome these new members into our local union, and we look forward to helping them win a strong first Teamsters contract.
‘Together, we’ll negotiate a collective bargaining agreement that provides the wages, benefits, and job security these workers deserve.’
Since 2022, over 1,900 workers at UNFI have voted to become Teamsters. The Teamsters now represent over 5,000 workers at UNFI nationwide.
Tom Erickson, Director of the Teamsters Warehouse Division said: ‘Across the country, thousands of hardworking UNFI workers are joining the Teamsters to gain the wages, benefits, and job protections that only a strong union contract can provide.
‘We remain committed to helping UNFI workers organise nationwide to achieve the security and protections they deserve.’
