GM, Ford, Stellantis slide as union president tosses proposals in the dustbin
Aug. 10, 2023 4:37 PM ET
Stellantis N.V. (STLA), GM, F
By: Christiana Sciaudone, SA News Editor
79 Comments
 Bill Pugliano/Getty Images News
General Motors Company (NYSE: GM), Ford (NYSE: F) and Stellantis N.V. (NYSE: STLA) slid amid worries that a strike or big union wage increase may be imminent.
It probably didn’t help that the United Auto Workers union president tossed STLA’s contract proposals in the literal garbage on Tuesday.
GM was down 5.8% while F fell 4.5% on Thursday. STLA was down 1.8%.
Tensions remain high between manufacturers and the United Auto Workers union as contract negotiations continue. Should a contract not be agreed upon, the union could strike next month.
The UAW is reported to be pushing for at least a 40% pay increase over the four-year contract, which would include a 20% jump in wages from the start.
STLA broke a pledge not to seek givebacks in this round of talks, UAW President Shawn Fain said in a statement. On Tuesday, Fain jettisoned STLA’s contract proposals into a trash can.
Last week, GM traded shots with the UAW ahead of the September 14 expiration of the current four-year labor contract. The company said it expects to offer unionized workers higher wages, but warned that granting the United Auto Workers' contract demands for large pay rises would hurt its ability to make sound business decisions.
Stellantis ( STLA) is the lead negotiator with the UAW, but the union has also presented demands to General Motors ( GM) and Ford Motor ( F).
The UAW demands would add more than $80B to each of the biggest U.S. automakers’ labor costs, Bloomberg reported, citing people familiar with the companies’ estimates.
When it reported earnings recently, GM's updated guidance did not include potential disruptions that could arise from a UAW strike. |
