UAW expands strikes against Ford and GM, demanding higher wages

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The strikes, which commenced on September 15, 2023, are the result of a demand from the union for a 40 percent wage increase. The union’s argument points to substantial profits and CEO pay rises within the automakers’ companies as justification for their demands. According to InvestingPro Tips, both Ford Motor and General Motors have been profitable over the last twelve months and are predicted to remain so this year.

The automakers have offered a 20 percent wage increase over four years, a proposal that includes cost-of-living adjustments and strike rights. This offer has been deemed unsatisfactory by the union, despite the fact that both companies have been able to maintain their dividend payments, as per InvestingPro Tips.

Notably, these strikes have begun to impact the production of profitable vehicles such as the Chevrolet Colorado, Ford Bronco, and Jeep Wrangler. The extended industrial action could potentially disrupt supply chains and affect the overall production capabilities of both Ford Motor and General Motors.

InvestingPro Data reveals that Ford Motor and General Motors have significant market caps of 50.31B USD and 45.72B USD respectively, indicating their substantial size and influence within the industry. Both companies have also demonstrated growth in their revenues, with Ford Motor recording a growth of 14.72% and General Motors a growth of 28.48% in the last twelve months.

The strikes are likely to have an impact on the companies’ stock prices, which have shown some volatility. Ford Motor’s stock price is currently at 12.56 USD, while General Motors’ price is at 33.16 USD. If the strikes continue, these prices could potentially fluctuate.

For more insights and tips, check out InvestingPro, which offers additional tips and real-time metrics about these companies and others in the Automobiles industry.

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