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The Zacks Analyst Blog Highlights General Motors, Ford Motor and Stellantis
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For Immediate Release
Chicago, IL – September 1, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Motors (GM - Free Report) , Ford Motor (F - Free Report) and Stellantis (STLA - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Big 3 Automakers Face Strike Threat as UAW Grants Authorization
The members of the United Auto Workers (UAW) voted in favor of authorizing a strike against Detroit Three automakers if an agreement is not reached prior to the expiration of the current four-year contract. The contract expires at midnight Sep 14, 2023.
Shawn Fain, president of UAW, said that 97% of voting members at General Motors, Ford Motor and Stellantis approved the authorization. Fain leads the union of about 150,000 workers.
He added that the union is exploring a lot of options, but the extension of the contract is not one of them.
President Joe Biden is concerned about the potential UAW strike and has emphasized his belief in the necessity of a situation where any lost job is promptly substituted with new employment opportunities. He further stressed the importance of ensuring the compensation for these new roles is fair and proportionate to the responsibilities they entail.
Some senators are advocating for nationwide UAW agreements to encompass jobs associated with battery joint ventures. These joint ventures currently offer lower compensation and the senators are pushing for these roles to be included under the UAW's jurisdiction with terms that ensure higher wages and benefits.
Per Fain, over the last two decades, workers have made numerous concessions, including giving up wage hikes, defined benefit pensions and post-retirement health care benefits. The UAW is determined to negotiate better terms, conditions and benefits for its members this year.
The union is demanding an end to the tiered wage system that pays new hires less than veterans. Other demands include wage hikes of 46%, the restoration of cost-of-living allowances and defined-benefit pension plans for new workers and a reduction in the workweek duration.
Per the union, more than half the workers in the automotive sector no longer have pensions. Currently, at Stellantis, only 30% of hourly U.S. workers qualify for defined benefit pensions.
While listing the series of demands, Fain said that while the members of the union sat back for decades, these companies continued to exploit them.
Fain believes that the Detroit Three carmakers can easily fulfill the contract terms, considering its profits over the past decade. He expects Detroit Three to come up with counter-proposals to the UAW demands next week.
The impact of the strike on Detroit Three inventories is vague. Till July, Stellantis U.S. Ram, Jeep, Chrysler and Dodge each had over 100 days' inventory, whereas other specific popular models had less.
UAW members' votes do not guarantee a strike. The right to call a strike is at the union's disposal if the agreement is not reached by Sep 14.
General Motors, Ford and Stellantis want a deal that is fair to workers and also provides the companies with flexibility. Per GM's emailed statement, the automaker is working hard with the union and bargaining in good faith to make sure that it gets the agreement right for its team members, customers, suppliers, the community and the business.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights General Motors, Ford Motor and Stellantis
For Immediate Release
Chicago, IL – September 1, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: General Motors (GM - Free Report) , Ford Motor (F - Free Report) and Stellantis (STLA - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Big 3 Automakers Face Strike Threat as UAW Grants Authorization
The members of the United Auto Workers (UAW) voted in favor of authorizing a strike against Detroit Three automakers if an agreement is not reached prior to the expiration of the current four-year contract. The contract expires at midnight Sep 14, 2023.
Shawn Fain, president of UAW, said that 97% of voting members at General Motors, Ford Motor and Stellantis approved the authorization. Fain leads the union of about 150,000 workers.
He added that the union is exploring a lot of options, but the extension of the contract is not one of them.
President Joe Biden is concerned about the potential UAW strike and has emphasized his belief in the necessity of a situation where any lost job is promptly substituted with new employment opportunities. He further stressed the importance of ensuring the compensation for these new roles is fair and proportionate to the responsibilities they entail.
Some senators are advocating for nationwide UAW agreements to encompass jobs associated with battery joint ventures. These joint ventures currently offer lower compensation and the senators are pushing for these roles to be included under the UAW's jurisdiction with terms that ensure higher wages and benefits.
Per Fain, over the last two decades, workers have made numerous concessions, including giving up wage hikes, defined benefit pensions and post-retirement health care benefits. The UAW is determined to negotiate better terms, conditions and benefits for its members this year.
The union is demanding an end to the tiered wage system that pays new hires less than veterans. Other demands include wage hikes of 46%, the restoration of cost-of-living allowances and defined-benefit pension plans for new workers and a reduction in the workweek duration.
Per the union, more than half the workers in the automotive sector no longer have pensions. Currently, at Stellantis, only 30% of hourly U.S. workers qualify for defined benefit pensions.
While listing the series of demands, Fain said that while the members of the union sat back for decades, these companies continued to exploit them.
Fain believes that the Detroit Three carmakers can easily fulfill the contract terms, considering its profits over the past decade. He expects Detroit Three to come up with counter-proposals to the UAW demands next week.
The impact of the strike on Detroit Three inventories is vague. Till July, Stellantis U.S. Ram, Jeep, Chrysler and Dodge each had over 100 days' inventory, whereas other specific popular models had less.
UAW members' votes do not guarantee a strike. The right to call a strike is at the union's disposal if the agreement is not reached by Sep 14.
General Motors, Ford and Stellantis want a deal that is fair to workers and also provides the companies with flexibility. Per GM's emailed statement, the automaker is working hard with the union and bargaining in good faith to make sure that it gets the agreement right for its team members, customers, suppliers, the community and the business.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.