GM, Ford slip after UAW warns of more walkouts, analysts say deal is close
The UAW wants workers at EV battery plants to be covered by union contracts, and defined benefit pensions restored for all workers. It had opened bargaining with a 40% wage-hike demand.
Representative image.
"The economics continue to get worse with reported further concessions on pension, both higher 401K contributions and increased benefits for retirees," said Wells Fargo analyst Colin Langan.
"Possibly a sign a deal could be done soon. However, most of the update was concerning as Fain interprets increased offers as a sign there is more to get," he said.
The UAW wants workers at EV battery plants to be covered by union contracts, and defined benefit pensions restored for all workers. It had opened bargaining with a 40% wage-hike demand.
The strikes and the negotiations with the UAW have weighed on automakers' shares. Since the contract talks began in mid-July, U.S.-listed shares of Stellantis have marginally risen, while Ford and GM shares were down at about 23% and nearly 27%, respectively.
Ford and GM trade at a 11.34 and 4.14 times forward profit estimate, respectively, which is well below the S&P 500's (.SPX) about 19.15 multiple.