ZINGER KEY POINTS
- A surge in UAW strikes threatens to disrupt auto production at GM, Ford, and Stellantis.
- The labor union has rejected the automakers’ wage increase offers, demanding a 36% hike instead.
A potential escalation of strikes looms over automotive industry leaders General Motors Co., Ford Motor Co. and Stellantis NV.
Their labor force, represented by the United Auto Workers (UAW), threatens to expand walkouts on Friday due to unresolved labor disputes.
Detroit Automakers Face Mounting Pressure As UAW Strike Continues
According to Bloomberg, the crux of the dispute involves job security and pay parity for temporary workers. UAW’s president, Shawn Fain, has issued a warning to broaden the walkouts to additional plants if the companies do not make considerable headway in negotiations.
Fain’s strategy diverges from his predecessors’, as the ongoing strike targets all three major Detroit automakers simultaneously, signaling a more aggressive approach.
The labor union has rejected the auto manufacturers’ current offers of approximately 20% wage increases over a four-year period, insisting on a 36% hike instead.
The ongoing strike, according to S&P Global Mobility, is already resulting in a production loss of about 3,200 vehicles per day.
The initial walkout, which began on Sept. 15, impacted plants that manufacture popular SUVs and trucks, with nearly 13,000 workers joining the strike, Bloomberg reported.
In premarket trading on Friday, General Motors Company’s shares have dipped by 0.4%, following a 1.5% decline on Thursday. Ford’s premarket performance is stable, after falling a 1.3% drop the previous day. Stellantis saw a 0.6% increase in its premarket trading.
On Thursday, the First Trust Nasdaq Transportation ETF, which comprises not only the three Detroit automakers but also Tesla Inc. fell by 1.6%, hitting the lowest levels since mid-June 2023.
First Trust Nasdaq Transportation ETF Chart
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Originally Posted September 23, 2023 – GM, Ford, And Stellantis Brace For Escalation Of UAW Strikes
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