Shares of major US automakers sink: what’s behind them

The actions from three manufacturers most important in the world collapse this Monday in Wall Streetafter the salary claim that he advances the Union automotive industry in the US, which led to a debate in the political sphere.

The union leader United Auto Workers (UAW), Shawn Fainwarned about a possible “climbing” in the strike that began on Friday at the three major automakers if the companies They do not present improved salary proposals. “If we do not receive better offers (…) “We’re going to intensify this even more.”Fain told the CBS program “Face the Nation.”

The union leader noted that General Motors, Ford and Stellantis “have no excuse“in order not to solve the salary problems given its enormous profitability in recent years.

In the middle of the union request, in the first business session of the week in Wall Streetthe shares of the three manufacturers fall. General Motors lost 1.3%, Ford fell 2% and Stellantis fell 1%. Negotiators representing the auto giants plan to resume talks with the United Auto Workers union late Monday, aiming to end one of the most crippling strikes in decades.

Wall Street: what’s behind the strike

The strikes have paralyzed production at three plants. Michigan, Ohio and Missouri that manufacture the Ford Bronco, Jeep Wrangler and Chevrolet Colorado, along with other popular models. The union initially called for wage increases of around 40%, while automakers have offered wage increases of around 20%.

Fain said the union was “prepared to take the necessary measures” when asked about the proliferation of more strikes in the US. Until now, there have only been contacts with GM on Sundaysaid a union source, without giving more details, quoted by CBS.

Since Friday, three plants have been stopped: one of General Motors in Wentzville (Missouri), another of Stellantis in Toledo (Ohio) and a Ford subsidiary in Wayne (Michigan).

This conflict involves 12,700 of the 150,000 UAW members working at these companies. Never before had there been a simultaneous strike in all three companies.

The union has chosen to limit the scope of the work stoppages for the time being so as not to completely halt production. “Stellantis and the UAW have reached a critical stage in negotiations,” the merger group said. Fiat Chrysler and the French group PSA in 2021.

Stellantis improved its offer and proposes an increase of “almost 21%” during the four years of validity of the new collective agreementcompared to 14.5% the previous week.

For Fain, a 21% offer is far from enough, and considers that employees deserve the same 40% salary increase awarded to the directors of the manufacturers. “We don’t even want to listen” about such an increase, he told the American news network on Sunday.

GM and Ford offer a total wage increase of 20%.

On this same Sunday, the vice president of the United States, Kamala Harrisexpressed his support for a “new labor contract” for the sector on social networks, which guarantees “good middle-class jobs and ensure the UAW remains critical to the American auto economy.”.