General Motors And The UAW May Be Closing In On A Deal
Portfolio Pulse from Erica Kollmann
General Motors (GM) and the United Auto Workers union are reportedly nearing a deal, potentially ending the costly work stoppages that have affected GM since September 15. The deal is expected to significantly increase GM's labor costs, with Deutsche Bank estimating the overall cost increase to be $7.2 billion over the term of the agreement. GM shares are currently down 4.8% at $27.18.
October 27, 2023 | 7:59 pm
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GM is nearing a deal with UAW, which could end work stoppages but increase labor costs by $7.2 billion. GM shares are down 4.8%.
The news of a potential deal between GM and UAW is directly relevant to GM. While it could end the work stoppages, it is expected to significantly increase GM's labor costs, which could negatively impact the company's profitability. This could be a factor in the recent drop in GM's share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Ford's recent tentative agreement with UAW, which increased the top wage rate by over 30%, is reportedly the basis for the potential GM-UAW deal.
Ford is mentioned as the company that recently reached a tentative agreement with UAW, which is reportedly the basis for the potential GM-UAW deal. However, the news does not provide any specific information about how this might impact Ford's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50