Winners and losers of the UAW talks with GM, Ford and Stellantis
Publishing timestamp: 2023-10-31 10:41:38
Summary
The United Auto Workers (UAW) reached a tentative deal with General Motors, ending six weeks of labor strikes against Detroit automakers. The UAW members with GM, Ford Motor, and Stellantis still need to vote to ratify the agreements. The deals include significant raises, cost-of-living adjustments, increased 401(k) contributions, and enhanced profit-sharing bonuses. While the UAW and its members are clear winners, other companies like Tesla and President Joe Biden may also benefit. The strikes have cost automakers billions of dollars, and their electric vehicle ambitions may be impacted. The UAW plans to use these record deals to assist in organizing efforts at other auto companies. The strikes have also affected the stock prices of Ford, GM, and Stellantis. The deals may increase labor costs for the companies, but the full impact is not yet clear. Nonunion plants, including Tesla and Rivian, may need to reconsider their pay structures to compete with the UAW's gains. Ford and GM have announced delays in production or investments for electric vehicles, which could give Tesla more time to compete. President Biden showed support for the UAW by walking the picket line, and his support may sway the union's re-endorsement and influence blue-collar voters in the Midwest.
Sentiment: NEUTRAL
Tickers: GM, TM, .FKRX300, 7203.T-JP, F, STLAM-IT, STLA, RIVN, TSLA,
Keywords: detroit, hyundai motor co, business, rivian automotive inc, personnel, stellantis nv, labor economy, toyota motor corp, business news, autos, transportation, ford motor co, tesla inc, general motors co, breaking news: business,
Source: https://www.cnbc.com/2023/10/31/uaw-talks-with-gm-ford-stellantis-winners-losers.html