Hundreds of individuals, including late-shift auto workers and their allies, congregated at a Ford Motor Company (NYSE:F) assembly facility in Wayne, Michigan, as the United Auto Workers (UAW) union members initiated their historic walkout.
According to Reuters, the United Auto Workers (UAW) union members walked off the job to begin what is considered the first-ever simultaneous strikes against the “Detroit Three” automakers, including General Motors (NYSE:GM) and Stellantis (NYSE:STLA), Chrysler’s parent company.
Mike Lester, an employee at an automotive supplier, expressed, “This is what union looks like.”
“It’s organized. We’re (here) to make sure … Ford pays their fair share to their employees.”
According to Reuters, the United Auto Workers (UAW) union members walked off the job to begin what is considered the first-ever simultaneous strikes against the “Detroit Three” automakers, including General Motors (NYSE:GM) and Stellantis (NYSE:STLA), Chrysler’s parent company.
Mike Lester, an employee at an automotive supplier, expressed, “This is what union looks like.”
“It’s organized. We’re (here) to make sure … Ford pays their fair share to their employees.”
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NewsTranscript
00:00 Well, will you be fading the automotives today?
00:03 Of course, labor strikes hitting the automotive industry hard with GM, Ford, Stellantis, factories
00:10 all affected here.
00:12 We're going to kick a watch at the price action.
00:15 But as you guys see this, this was just the kind of a reporting as of course the deadline
00:21 hit last night.
00:23 Sean Fay, the UAW president was saying that we demand fair agreement for economic and
00:29 social justice.
00:31 Income disparity is a problem and workers deserve their fair share.
00:35 The strike will continue until workers' needs are prioritized.
00:40 The struggle isn't just about us.
00:42 It's about the workers nationwide and we will persist as long as necessary for fairness.
00:50 And there were some mentions yesterday.
00:52 Of course, it seems like they were moving up in their offers.
00:56 GM had offered up to 20% wage increases and they had moved down to mid 30%.
01:03 So what I'm seeing out there is about 20 to 40%.
01:08 Could they maybe meet at 30%?
01:11 That's one thing that at least I would give on my outlook here.
01:15 Yeah, I think you're going to meet probably lower than 30%.
01:19 I think, you know, what Phil LeBeau saying on CNBC, who's more connected than him, he
01:23 thought it's going to be in the mid 20s.
01:24 I think that's where it's going to be too.
01:26 Remember this is over four years too.
01:27 It's not an instantaneous 25 or 30% raise.
01:31 So it sounds better when you're saying over four years.
01:33 But let's, you know, like Mary Barra was just on CNBC.
01:36 They're all frustrated.
01:37 The CEOs are all frustrated.
01:39 The companies are all frustrated because the UAW hasn't responded.
01:42 They haven't given an offer back.
01:45 So I mean, that is frustrating.
01:47 Here, you know, obviously there's been offers put like, well, give us something back on
01:50 paper.
01:51 Like, give us something.
01:52 It's almost like this UAW president just wanted this historic strike under his belt.
01:57 You know, all three striking at the same time.
02:00 I'm going to get this under my belt.
02:01 I'm the best president ever.
02:03 You know, like it's almost like he needed to have this.
02:06 And that's selfish on his part, in my opinion.
02:09 I believe, you know, if they could have negotiated.
02:11 So maybe they start negotiating harder now that they're officially on strike, but he
02:14 wanted to strike.
02:15 He was going on strike.
02:16 He did, no matter what.
02:17 He wanted it.
02:18 He needed it.
02:19 I mean, so now that they're officially on strike, maybe they can actually start talking
02:25 here because he's got the official strike.
02:27 He's got the strike belt.
02:29 So I think, you know, there will be a deal here made.
02:33 I think it will be in the mid-20s.
02:35 I think that UAW demands will come down.
02:37 Obviously you hope it's not a prolonged strike where it's going to start affecting the suppliers
02:41 and plasma.
02:42 It's a great point.
02:43 We're going to talk to suppliers here in a second.
02:45 But you know, it's now official.
02:47 So GM and Ford are trading down, but not down much.
02:50 And you know, because everybody knew, we knew this, you know, another playoff of this is
02:54 Tesla trading higher.
02:55 I did get a long Tesla on the close for the simple reason that I thought it would trade
03:00 up here today.
03:01 I've sold the stock now because it's up $2.50.
03:03 And I feel like it's kind of priced in, but that was kind of an obvious trade.
03:07 What about the suppliers?
03:08 Plasma was asking, you know, we could talk about the suppliers here because there is
03:13 a number of those that obviously could be impacted if it's a prolonged strike.
03:17 I mean, you got Lear and Magna.
03:19 I mean, Magna is one of the biggest.
03:20 So MGA.
03:22 So we could look at a chart like that.
03:23 Like if these haven't sold off much, I mean, they're still sitting up here.
03:26 Like what do you think, technically speaking, both of you technically?
03:29 What do you think on a stock like MGA?
03:31 Well first, before we go to that, I just wanted to go to the sympathy plays and we probably
03:37 should have picked this up earlier.
03:39 Mitch and I did talk about Tesla.
03:41 Tesla is going to get benefit, but have you still got your Toyota, Dennis?
03:45 I sold my Toyota just recently.
03:47 I just sold it and I should have held on to it thinking about this strike.
03:50 I should have held on a little bit longer.
03:51 I sold it about a week ago.
03:53 $181, I think I sold it right in there because it's just moved a long ways.
03:57 I picked it up at $140.
03:58 It's moved to $180, 40 points.
04:00 I was up 30% in three months.
04:02 It felt like a pretty good move.
04:05 So I mean, three month trade, make 30%, you know, and it's not been a great trading environment,
04:09 like an investing environment from a pretty good trading environment.
04:12 Not a great investing environment.
04:13 I think it's been a good move.
04:14 I do think now you're looking at Toyota.
04:16 I think like these are like now it's like this is the froth, you know, this is, you
04:21 know, probably the time to actually sell it.
04:23 So I was probably sold too early, but I always sell too early.
04:26 That's what I do, man.
04:27 Look at Honda too.
04:28 Honda has been revving up his engines as well too.
04:31 They've moved from 30 to 36.
04:34 I mean, I was listening to the Jim Farley, the Ford president, who also I think you got
04:41 to like him.
04:42 I think he was a really good, someone told me a really good competitive swimmer.
04:46 He was like, you know, we put, we put, they put a historic deal on the table and they
04:51 didn't even get a phone call back.
04:52 So he wanted the strike, man.
04:55 He was not going to negotiate before the strike whatsoever.
04:59 He needed this.
05:00 I think it's completely selfish.
05:01 It's just my opinion.
05:02 I don't, I'm not his head.
05:03 I don't know, but I think he wanted that strike.
05:07 Is this also have to do with the way to how easy Teamsters and UPS had it?
05:12 Right.
05:13 I mean, they got what they wanted.
05:15 So I think that this has to do with that, right?
05:18 Just seeing other labor negotiations going so well for UPS.
05:23 They're like, well, maybe we can get what we want if we just stand firm on our percentage.
05:30 And it is his job.
05:32 So, you know, I do say he wanted the historic strike, but it is his job to your point, Mitch,
05:35 to get the best deal possible.
05:37 And he feels the best deal possible is by striking.
05:40 So that's why they're doing it.
05:42 You know, is he going to get the 46?
05:44 I don't think so.
05:45 44, whatever he's asking.
05:46 We know they would drop to the thirties.
05:47 Is he going to get it up in the thirties?
05:50 Maybe it stays strong enough, but I do think that these automotives companies here, I think
05:55 demand is going to fall off a cliff for all of them.
05:57 I do think interest rates are eventually going to hit home here.
06:00 You know, we had Ken Griffin on there.
06:01 He made great points.
06:02 It takes a year to a year and a half, he said, for interest rates to really do their work.
06:05 Well, we're coming into that spot right now.
06:07 And maybe we're wrong, but I think the big ticket stuff, the reason solar is epically
06:12 disastrous, the reason, you know, GM and Ford have sold off, it is because of the strike,
06:16 but it's also because investors are predicting that auto demand is going to start to go down
06:23 at least a little bit.
06:24 We were on peak record profits.
06:25 Same thing with the airlines, you know, like they're coming off.
06:28 It was like, you know, Goldilocks.
06:30 Everybody's traveling.
06:31 Who cares?
06:32 We don't care.
06:33 We're going to live for today.
06:34 Well, you know what?
06:35 It's tomorrow now.
06:36 It's tomorrow.
06:37 YOLO, it is tomorrow.
06:38 And a lot of these people have actually spent their money.
06:40 So I mean, this is why the airlines are going down.
06:43 And again, fuel prices are something to do with it, too.
06:46 You know, they're blaming fuel prices.
06:47 But I also think you're going to have demand issues here as well, because you know what
06:50 happens when the fuel prices go up?
06:52 They got to raise the ticket prices and that curtails demand, too.
06:55 So there's a lot of considerations here.
06:58 But I think interest rates hit home in the automotives as well.