The United Auto Workers union is attempting to inflict a new kind of pain on the companies and recoup some pay and benefits workers forfeited in recent decades by going on strike at General Motors, Ford, and Chrysler owner Stellantis at the same time for the first time in its history.
The labor actions will involve about 12,700 workers at those facilities. From the $825 million strike fund of the UAW, they will receive about $500 per week while on strike.
Corporate executives are not pleased with the union’s demands, which at the high end call for a 40 percent wage increase. If those demands are met, we will not be a sustainable business, Ford CEO Jim Farley told CNBC. According to Deutsche Bank analysts, the automakers’ annual profit would be reduced by $1 to $2 billion as a result of the full demands. On $157 billion in The income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th..., GM made less than $10 billion in profit the previous year. $2 billion was lost by Ford.
The UAW union, also known as the United Automobile, Aerospace and Agricultural Implement Workers of America, is one of the largest labor unions in the United States. It represents workers in various industries, primarily focusing on the automotive sector. The union was established in 1935 and has a long history of advocating for better wages, benefits, and working conditions for its members.
The UAW negotiates collective bargaining agreements with employers to secure fair wages, healthcare, retirement benefits, and job security for its members. Additionally, the union engages in political activism and community outreach efforts to support workers’ rights and promote social justice.
Keep an Eye on the Price of Tesla
Tesla might be among the strike’s biggest winners. There’s a good reason why Tesla is valued at close to $900 billion. As of June 30, 2023, it was the biggest EV manufacturer in the world and it is not a union. After passing Germany last year, China is anticipated to surpass Japan in terms of vehicle exports this year.
Observe China Auto Stocks
China wasn’t even among the top 15 global auto exporters less than three years ago. It is expected to surpass all others by the end of this year.
China is currently the subject of an anti-subsidy investigation by the EU, which is concerned that China may indeed produce cars more effectively and inexpensively than it has done with virtually every other global consumer product over the past 20 years. Cheaper cars are now overrunning the world’s markets, and significant state subsidies keep their price artificially low.
For the time being, the strikes are only occurring at three assembly plants: a GM plant in Wentzville, Missouri, a Ford plant in Wayne, Michigan, close to Detroit, and a Stellantis-run Jeep plant in Toledo, Ohio.