Autoworkers Union Talks Drive Ford And General Motors Stock Lower

Ford Motor Company F and General Motors Company GM shares are trading lower Thursday as shares of automakers fall amid union talks.

What To Know: According to a Bloomberg report, the United Auto Workers Union have made new contract demands, amid already rigid contract negotiations, which would add over $80 billion to the labor costs of each of the largest US automakers.

While workers feel they are owed compensation for helping the companies during the Great Recession, the demands could increase to labor costs and diminish profits.

Ford CEO Jim Farley argued however that the additional spending on labor would benefit the company in the long-run, stating, "For us, this is not simply a number crunching exercise. We believe over time customers will appreciate and reward our approach and our workforce will be more committed.”

UAW President Shawn Fain, who has declared "war" on the companies, has criticized the automakers for their focus on designing and building EVs which he claims will only result in lower wages and fewer workers.

On Tuesday, Fain called Stellantis' starting proposal a "slap in the face", citing such claims as the company's proposal to cut existing medical coverage.

As the union’s contracts with General Motors, Ford and Stellantis are set to expire on Sept. 14, Fain has prepared his workers to strike in order to attain strides for them.

Related Link: What's Going On With WeWork Stock?

F, GM Price Action: At the time of publication, F shares were down 4.48% at $12.16 at the time of publication, while GM shares were down 5.32% at $34.33, according to Benzinga Pro.

Image by Zdravko Shishmanov from Pixabay