(News Bulletin 247) – The president of the American union United Auto Workers, Shawn Fain, rejected Friday the latest proposals presented by Ford, particularly in terms of salary increases.
Ford’s plan includes, among other things, a general salary increase of 9%, accompanied by a lump sum bonus representing an additional increase of 6%, for a total gain of 15%.
The UAW argues that it is pushing for a “double-digit” wage increase, saying Ford’s proposed 9% raise doesn’t even cover the inflation calculation.
On the Ford side, it is pointed out that the concessions offered to employees would allow them to benefit from higher remuneration than those offered by Tesla or foreign car manufacturers present in the United States.
The UAW has set September 14 as the deadline for a strike, in case its negotiations with the ‘Big Three’, namely Ford, GM and Stellantis, do not succeed.
“A potential strike in the US auto sector could have major repercussions on the economy,” warns Joseph Amato, chief investment officer at Neuberger Berman.
“Let’s be clear: this is a potentially catastrophic situation for GM and Ford as both groups have embarked on a massive electric transformation that will determine their future success,” said Wedbush analyst Dan Ives.
The title Ford advanced by 0.6% on Friday on the New York Stock Exchange after this information, but shows a decline of nearly 9% over the past month.
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