ZINGER KEY POINTS
- Shawn Fain, UAW President, rejects Stellantis’ 21% wage hike offer, deeming it a “no-go.”
- The strike’s financial stakes are high, potentially erasing annual profit-sharing checks for Detroit’s Big Three.
The United Auto Workers entered its fourth day on strike Monday with no immediate resolution on the horizon.
Clocking in at a remarkable 88 years, it’s the first time the UAW has simultaneously squared off against all three of Detroit’s automakers — General Motors Co., Stellantis N.V. and Ford Motor Co.
As this labor dispute takes center stage, here are five crucial insights to fuel the latest developments.
- Demanding a Bigger Slice: On CBS’s Face The Nation, UAW president Shawn Fain announced that the union is declining a proposal for a 21% wage hike from Stellantis. According to Fain, the offer is “definitely a no-go,” remarking that the union made that clear to the automakers. Talks with Ford were reinitiated during the weekend. The union told Barron’s that it was “fairly productive,” although no further details were provided.
- A Costly Standoff: While the workers walk the picket lines, the tab keeps running. In 2022, Ford, GM, and Stellantis revved up their engines. The companies collectively raked in a cool $37 billion in North American operating profit. A three-month strike, which could stretch until December, threatens to wipe out the annual profit-sharing checks of Detroit’s Big Three. It’s like a high-stakes poker game, and both sides are betting big.
- A Stellantis Plant in Italy Goes on Strike: Employees at Stellantis‘ Melfi, Italy-based factory initiated a strike on Monday. This work stoppage, as indicated in a joint statement by labor unions FIM-CISL, UILM, Fismic, and UGL, arises from a situation where there is insufficient clarity regarding the future car production at the facility.
- Automakers Respond With Layoffs: The so-called “Big Three” three automakers have taken measures involving temporary layoffs as a response to the strikes. On Friday, Ford revealed that it had instituted temporary layoffs affecting approximately 600 non-striking employees at its Michigan plant. General Motors stated that as production remains on hold, around 2,000 workers at its Fairfax Assembly plant in Kansas may face temporary unemployment this week.
- Stock Reactions: In premarket trading on Monday, the stocks of the leading three automakers are showing declines. Stellantis is experiencing a 1.8% drop, while Ford and GM are down 0.4% and 0.3%, respectively. Notably, compared to their peak values in July, Stellantis shares have seen a decline of 9%, Ford has witnessed an 18% decrease, and GM has recorded a 17% decrease.
Originally Posted September 18, 2023 – 5 Things To Know Monday About UAW Strike Against US Auto Giants
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