United Auto Worker employees at Ford Motor and Stellantis are voting on a new labor deal. General Motors workers are about to vote.
With the 2023 labor negotiations between the Union and the Detroit-Three just about over, UAW president Shawn Fain has a message for non-union auto workers: “Get ready to stand up.”
As of Saturday morning, about 5,000 votes have been counted at
Ford
(ticker: F), representing just under 10% of the UAW-represented workforce. So far, more than 80% of the votes have been “yes.” Roughly 24,500 more yes votes are needed to cross the finish line. Ford employs some 57,000 UAW-represented workers, the most of the Detroit-Three.
While the process isn’t done, it looks like contract ratification is nearly assured. Union employees appear happy with the new labor deal that runs through April 2028 and includes base wage increases of 25% over the life of the deal, plus other enhancements. There is also an 11% wage bump upon ratification, helping offset the inflation of recent years.
Ford said Thursday that almost all of its striking workers were back on the job.
Fain, in a live-streamed presentation on Thursday, went over details of the tentative agreement with
Stellantis
(STLA) workers. The review is a step taken before the deal is sent to members for ratification.
Fain and UAW Vice President Mike Booth will review details for
General Motors
(GM) workers on Saturday at noon. The presentation can be watched here. GM was the last of the Detroit-Three to finish the initial negotiating process.
In his prepared remarks to Stellantis workers, Fain noted how UAW efforts impact the entire auto industry. “Just after we announced our tentative agreements another company made an announcement,” he said, pointing out that
Toyota Motor
(TM) gave workers pay increases and lowered the number of years needed to reach top rates. “Sound familiar?” Fain asked.
Toyota declined to comment to Barron’s about the wage increases referenced by Fain and reported by the Wall Street Journal.
The enhancements for Toyota workers are similar to what the UAW won for Detroit-Three UAW workers. “UAW, that stands for you are welcome,” Fain said, reiterating a promise to try to organize non-union auto makers, such as Toyota, operating in the U.S. “Imagine what [Toyota workers] could accomplish if you join the UAW and stand up and fight for yourselves.”
Investors are watching.
Since the start of July, when labor issues started to weigh on investor sentiment, Toyota shares are up about 18% while the
S&P 500
is down about 2%. GM stock has fallen about 24%.
Write to Al Root at [email protected]
Read the full article here
