Negotiations between the United Auto Workers (UAW) and major auto makers are set to enter a crucial phase as a new deadline looms on Friday. With the threat of an expansion of the strike hanging in the air, both parties are under pressure to make significant progress before noon Eastern time.
The UAW initiated the strike on September 15 and has already followed through on its threat to escalate the walkouts at General Motors (GM) and Stellantis (STLA) plants. However, Ford (F) managed to avoid further disruptions due to positive advancements in negotiations.
The recent visits by former President Trump and President Biden have added to the media spotlight surrounding the UAW strike, which is nearing its two-week mark. Despite this attention, investor response has been relatively subdued, with stocks of all three auto companies showing minimal movement.
The upcoming actions taken by the UAW will be pivotal in determining the duration of the standoff. If additional strikes occur at Ford plants, it could indicate a deterioration in negotiations or dissatisfaction with the progress made thus far.
As negotiations continue, investors are adopting a cautious “wait-and-see” approach. The outcome of these talks will play a significant role in shaping the future of the auto industry.