Strike or No Strike, GM, Ford, and Even Tesla Will Pay Rising Labor Costs

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Strike or No Strike, GM, Ford, and Even Tesla Will Pay Rising Labor Costs
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A strike or new contract will raise labor costs for General Motors, Ford, and Stellantis, but even nonunion automakers such as Rivian and Tesla are facing...

There are about eight and a half days left before the United Auto Workers’ labor deal with the Detroit-Three automakers expires Sept. 14. After that, a strike is almost assured. Some on Wall Street are worried about the costs of a work stoppage.

The 313 area code is for Detroit where General Motors and Ford Motor are based, and where Chrysler parent Stellantis has roots, too. United Parcel Service recently signed a new deal with the Teamsters that includes wage increases of roughly 5% to 6% a year on average for the coming five years. How wages will increase exactly isn’t really calculable, it’s a rough guide based on available data.

Nelson adds that new UAW President Shawn Fain is looking to make his mark, asking for more than 40% wage increases over the life of the contract.

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