![]() Pras Subramanian is a reporter for Yahoo Finance. When pressed for details on what effect a work stoppage would financially entail, GM's Jacobson said he wouldn't get into "any speculation on the impact of a work stoppage." GM CEO Mary Barra said in her letter that the company's updated guidance assumes that the automaker "successfully negotiate new labor agreements without a work stoppage." The current UAW contract is set to expire on September 14, and the impact on the automakers' financial performance could be severe. With Tesla’s price cuts front and center in the EV landscape, GM has said it will not engage in any EV price cuts, as the automaker sees its pricing strategy as appropriate.Īnother headwind for GM, as well as its fellow rivals Ford and Stellantis, is the current UAW labor negotiations. (Photo by Josh Lefkowitz/Getty Images) (Josh Lefkowitz via Getty Images) CNN Sans ™ & © 2016 Cable News Network.The first ever all-electric Chevrolet Silverado EV is on display at the 2022 Los Angeles Auto Show on November 18, 2022, in Los Angeles, California. Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account CNN’s Matt Egan contributed to this article. Shares fell 19% over those six weeks. And while the stock has made up some of that ground, Wednesday’s gains still left it down 6% for the year. “Now executives, company insiders and big shareholders are squeezing every spare dollar out the company,” Warren said in a statement.Įven with Wednesday’s surge in GM’s share price, the stock is trading for less than it did at the start of the strike. On Wednesday, Warren called GM’s latest buyback “an insult” to auto workers who had to “fight like hell to get a fair contact.” Elizabeth Warren, deride the practice as “paper manipulation” that artificially inflates a company’s value. The UAW didn’t immediately comment on GM’s buyback announcement.īuybacks - in which a company repurchases outstanding shares in the open market to increase the value of existing shareholders’ stakes - are a controversial but widely used tool for companies to reward investors.Ĭritics, like US Sen. GM rank and file ratify labor deal, ending threat of a renewed strike automaker's full-size sport utility vehicles, in another expansion of the strike in Arlington, Texas, U.S. United Auto Workers (UAW) members strike at a General Motors assembly plant that builds the U.S. But the issue got scrapped during negotiations with management. Under the share repayment announced Wednesday, that would have come to about $20,300 total per union member. One of the union’s earlier demands was that every member would receive $2 for every $1 million the company spent on share repurchases and increased dividends. The UAW had strongly objected to GM’s payments to shareholders in the form of share repurchases and dividends. ![]() “Now that we have a ratified contract and a clear path forward that includes greater operating investment efficiency, we can resume returning excess capital to shareholders per our plan,” said CEO Mary Barra on an investor call Wednesday. The company reported strong earnings in its most recent quarter, and now expects full-year operating profit of $11.7 billion to $12.7 billion. Of course, in announcing shareholder rewards, GM signaled it could absorb the financial hit from the strike. Under the deal, workers secured a record 25% wage increase for 46,000 UAW members over the life of the contract. ![]() New contracts for GM’s unionized workers in the United States and Canada will cost the company an additional $9.3 billion through 2028. Paul Sancya/APĪ core frustration unites striking workers: Exorbitant CEO pay The UAW is conducting a strike against Ford, Stellantis and General Motors. United Auto Workers members march through downtown Detroit, Friday, Sept.
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