UAW Expands Strikes Against Ford and GM, Demanding Higher Wages

The United Auto Workers (U.A.W.) union has intensified its strike actions against Ford Motor and General Motors, now including a Ford facility in Chicago, a General Motors plant in Lansing, and 38 distribution centers. This decision to expand the strikes was announced by U.A.W. President Shawn Fain on Friday.

The strikes began on September 15, 2023, following the union’s demand for a 40 percent wage increase. The union cites the significant profits and rising compensation for CEOs within these companies as a basis for their demands. Both Ford and General Motors have reported profitability over the past year and are expected to remain financially stable moving forward.

In response, the automakers have proposed a 20 percent wage increase over a four-year period, which includes provisions for cost-of-living adjustments and rights regarding strikes. However, the union has rejected this offer, arguing that it falls short of their expectations, even though both companies have continued to maintain their dividend payments.

The ongoing strikes have started to disrupt the production of key profitable vehicles like the Chevrolet Colorado, Ford Bronco, and Jeep Wrangler. Prolonged industrial action may further complicate supply chains and impact the overall production capabilities of both Ford and General Motors.

Market data indicates that Ford has a market capitalization of approximately $50.31 billion and General Motors around $45.72 billion, reflecting their significant presence in the automotive industry. Additionally, both companies have experienced revenue growth recently, with Ford showing an increase of 14.72% and General Motors an impressive 28.48% over the past twelve months.

The strikes are likely to influence the stock prices of these companies, which have recently exhibited some volatility. Currently, Ford’s stock price is approximately $12.56, while General Motors’ stands at $33.16. Continued strike actions could lead to further fluctuations in these prices.

This content was generated with AI assistance and reviewed by an editor.