Overview

Employees of the United Auto Workers (UAW) at Ford Motor and Stellantis are currently participating in a vote on a new labor deal. Meanwhile, General Motors workers are preparing to cast their votes.

UAW President's Message

Shawn Fain, the president of UAW, has a clear message for non-union auto workers: "Get ready to stand up." As the 2023 labor negotiations between the Union and the Detroit-Three approach their conclusion, Fain emphasizes the importance of unity and collective action.

Ford's Progress

As of Saturday morning, approximately 5,000 votes have been counted at Ford, which accounts for just under 10% of the UAW-represented workforce. More than 80% of these votes have shown support for the new labor deal. However, around 24,500 additional affirmative votes are required to reach the final threshold. Ford has the largest number of UAW-represented workers among the Detroit-Three, with a workforce of about 57,000.

Positive Outlook

Although the voting process is ongoing, it appears highly likely that the contract will be ratified. Union employees seem satisfied with the terms of the new labor deal, which will extend until April 2028. The agreement includes a noteworthy 25% increase in base wages throughout its duration, alongside other notable improvements. In addition, upon ratification, employees will receive an immediate 11% wage hike to offset recent inflation.

Ford's Workforce Update

Ford announced on Thursday that almost all of its striking workers have returned to their positions, signaling a positive shift towards the resolution of labor disputes.

Stellantis Negotiations

During a live-streamed presentation on Thursday, President Fain discussed the tentative agreement reached with Stellantis workers. This presentation serves as a prelude to the final step of sending the deal to members for ratification.

Fain and UAW Review Details for GM Workers

On Saturday at noon, Fain and UAW Vice President Mike Booth will be reviewing important details for General Motors (GM) workers. The presentation can be watched here. GM was the last of the Detroit-Three to complete the initial negotiating process.

UAW's Impact on the Auto Industry

Fain, in his prepared remarks to Stellantis workers, emphasized the significant impact of UAW efforts on the entire auto industry. He highlighted a recent announcement made by Toyota Motor (TM) regarding pay increases and reduced years needed to reach top rates. Fain made a parallel between this development and the achievements of the UAW. However, Toyota declined to comment on these wage increases when approached by the Wall Street Journal.

These enhancements for Toyota employees closely resemble the victories won by Detroit-Three UAW workers. Fain reiterated the promise of the UAW to organize non-union auto makers, including Toyota, operating within the U.S. He encouraged Toyota workers to consider joining the UAW and fighting for themselves, emphasizing the potential accomplishments they could achieve.

Investor Sentiment and Toyota's Performance

The actions taken by labor unions have not gone unnoticed by investors. Since July, when labor issues began to affect investor sentiment, Toyota shares have risen approximately 18%, while the S&P 500 has experienced a decline of about 2%. In contrast, GM stock has fallen by roughly 24%.