Benzinga - by Ramakrishnan M, Benzinga Editor.
The United Auto Workers (UAW) union is reportedly threatening to expand its strike against Detroit carmakers if negotiations for new four-year contracts do not make progress.
What Happened: Currently, there’s a limited strike at General Motors (NYSE:GM), Ford Motor Co (NYSE:F), and Stellantis (NYSE:STLA). The UAW has warned that it will name new strike targets unless there’s headway by Friday, the Wall Street Journal reported on Wednesday.
The strike began at assembly plants and expanded to include 38 parts-distribution centers owned by GM and Stellantis, but Ford was spared from walkouts as progress was made in their contract talks.
To cope with the strike, GM and Stellantis have reportedly asked white-collar workers to handle parts shipments to ensure components reach dealerships for maintenance and repairs.
Stellantis leased a nonunion warehouse and stocked up on parts inventory ahead of the strike, according to the Journal, while Ford has trained white-collar staff to work at parts depots.
Why It Matters: While the strike has had a limited consumer impact so far, it affects thousands of dealerships and can disrupt service departments by delaying routine maintenance and repair work due to parts shortages.
The strike’s effects have spilled over to non-striking plants and suppliers, leading to temporary layoffs for thousands of workers at various facilities.
President Joe Biden joined the picket line in support of the striking UAW members, marking a pro-union stance by the leader of the United States.
Price Action: Shares of Ford closed down 0.32% at $12.39 on Wednesday, while those of GM and Stellantis ended up 0.26% at $32.35 and down 0.16% at $18.81, respectively, according to data from Benzinga Pro.
Read Next: Tesla CEO Elon Musk Slams Biden For Supporting UAW Demands
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