We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Motors (GM), Unifor Near Resolution With Tentative Pact
Read MoreHide Full Article
General Motors (GM - Free Report) secured a tentative deal with approximately 4,300 Canadian autoworkers after the union, Unifor, representing these workers, initiated a national strike on Tuesday at three GM facilities.
The strikes were launched at the Oshawa Assembly Plant, St. Catharines Powertrain Plant, and the Woodstock Parts Distribution Centre. However, following this tentative agreement, Unifor announced that the “strike actions are on hold” to allow union members to cast their votes. For the agreement to be ratified, the support of the majority of the workers is required.
The call for a national strike resulted from the failure to secure a deal by the stipulated Monday deadline of 11:59 p.m. This brief strike impacted an assembly plant producing the Chevrolet Silverado trucks. Additionally, the strike impacted production at GM's engine plants, a stamping facility and a parts distribution center.
Given its crucial role in manufacturing engines for highly profitable vehicles like full-size pickup trucks and SUVs, the stoppage of work at the Canadian engine plant emerged as a significant cause of concern. As we know, GM — which currently carries a Zacks Rank #4 (Sell) — is already grappling with strikes initiated by the United Auto Workers union in the United States.
GM’s tentative deal with Unifor, awaiting ratification, promises significant wage hikes —approximately 20% for production workers and an impressive 25% for skilled tradespeople over the three-year contract. Moreover, the agreement includes other benefits, such as reactivating cost-of-living adjustments and reducing the period for workers to achieve top pay.
Following the ratification of the GM deal, Unifor plans to shift its attention to negotiations with Chrysler-parent Stellantis (STLA - Free Report) , which maintains the most extensive presence of the Detroit automakers in Ontario, Canada, representing roughly 8,230 workers.
Unifor—representing 18,000 Canadian workers of Detroit automakers— has employed a traditional negotiation method that involves dealing with each automaker individually. It uses one agreement as a model for subsequent negotiations. This approach is in stark contrast with the UAW's innovative strategy of bargaining with Ford, General Motors and Stellantis simultaneously. The UAW has gradually escalated its strike actions since the initiation of work stoppages on Sep 15, opting for targeted strikes over national walkouts. Currently, around 34,000 UAW-represented workers are on strike.
These strikes in the auto industry underscore the importance of worker representation and the dynamics of labor negotiations. It remains to be seen how negotiations with automakers unfold.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Motors (GM), Unifor Near Resolution With Tentative Pact
General Motors (GM - Free Report) secured a tentative deal with approximately 4,300 Canadian autoworkers after the union, Unifor, representing these workers, initiated a national strike on Tuesday at three GM facilities.
The strikes were launched at the Oshawa Assembly Plant, St. Catharines Powertrain Plant, and the Woodstock Parts Distribution Centre. However, following this tentative agreement, Unifor announced that the “strike actions are on hold” to allow union members to cast their votes. For the agreement to be ratified, the support of the majority of the workers is required.
The call for a national strike resulted from the failure to secure a deal by the stipulated Monday deadline of 11:59 p.m. This brief strike impacted an assembly plant producing the Chevrolet Silverado trucks. Additionally, the strike impacted production at GM's engine plants, a stamping facility and a parts distribution center.
Given its crucial role in manufacturing engines for highly profitable vehicles like full-size pickup trucks and SUVs, the stoppage of work at the Canadian engine plant emerged as a significant cause of concern. As we know, GM — which currently carries a Zacks Rank #4 (Sell) — is already grappling with strikes initiated by the United Auto Workers union in the United States.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GM’s tentative deal with Unifor, awaiting ratification, promises significant wage hikes —approximately 20% for production workers and an impressive 25% for skilled tradespeople over the three-year contract. Moreover, the agreement includes other benefits, such as reactivating cost-of-living adjustments and reducing the period for workers to achieve top pay.
Last month, General Motors’ closest peer, Ford (F - Free Report) struck a new three-year collective agreement with Unifor. The pact, covering over 5,600 Ford workers in Canada, saw 54% of the participating workers voting in favor of it.
Following the ratification of the GM deal, Unifor plans to shift its attention to negotiations with Chrysler-parent Stellantis (STLA - Free Report) , which maintains the most extensive presence of the Detroit automakers in Ontario, Canada, representing roughly 8,230 workers.
Unifor—representing 18,000 Canadian workers of Detroit automakers— has employed a traditional negotiation method that involves dealing with each automaker individually. It uses one agreement as a model for subsequent negotiations. This approach is in stark contrast with the UAW's innovative strategy of bargaining with Ford, General Motors and Stellantis simultaneously. The UAW has gradually escalated its strike actions since the initiation of work stoppages on Sep 15, opting for targeted strikes over national walkouts. Currently, around 34,000 UAW-represented workers are on strike.
These strikes in the auto industry underscore the importance of worker representation and the dynamics of labor negotiations. It remains to be seen how negotiations with automakers unfold.