Shares of General Motors, Ford Motor, and Stellantis experienced an early surge in trading on Friday, in response to a strike initiated by the United Auto Workers (UAW) union at all three Detroit automobile companies.
- GM shares rose by 2%
- Ford saw an increase of 0.8%
- Stellantis edged up by 1.1%
The UAW officials decided to initiate a walkout after failing to reach new labor agreements with the automakers, affecting approximately 146,000 factory workers in the United States. Although bargaining continued until late Thursday night, the two sides remained too far apart to avoid a strike as the 11:59 p.m. ET deadline approached. It is worth noting that this is the first time in its 88-year history that the UAW has conducted strikes across all three companies, as mentioned by UAW President Shawn Fain.
Despite offering wage increases ranging from 17.5% to 20% over four years, which fell short of the union’s mid-30% demand, the companies were unable to reach an agreement before the strike. Additionally, issues such as cost-of-living adjustments and retiree medical benefits also remain unresolved.
A spokeswoman from Ford stated that the union’s latest demands were unsustainable but reaffirmed the company’s commitment to finding a resolution. GM expressed disappointment with the UAW’s actions, highlighting that they had made an unprecedented offer. Similarly, Stellantis conveyed their disappointment and criticized union leaders for refusing to engage responsibly.
