The fight between automakers and the United Auto Workers (UAW) union seems far from over, with UAW filing unfair labor practice charges with the National Labor Relations Board (NLRB) against legacy automaker General Motors (NYSE:GM) and Chrysler-parent Stellantis (NYSE:STLA). UAW alleged that the two automakers are not bargaining in good faith.
UAW vs. Automakers
In a live-streamed update, UAW president Shawn Fain said, “GM and Stellantis’ willful refusal to bargain in good faith is not only insulting and counterproductive, it’s also illegal.”
In his online comments, Fain added that the Detroit automakers want to have the authority to close U.S. auto plants and move manufacturing to low-wage countries and called the threats by automakers to shut down U.S. plants “economic terrorism.”
The charges filed by UAW come just two weeks before the current four-year agreements covering 146,000 workers expire on September 14. UAW has threatened to go on strike if a deal isn’t reached.
Fain has been leading the union’s negotiations with Ford Motor (NYSE:F), GM, and Stellantis. The union did not file any charges against Ford, as the company submitted a formal offer that guarantees 15% combined wage increases and lump sums, and enhanced benefits. However, Fain slammed the counteroffer, calling it inadequate.
GM, Stellantis React to Allegations
Reacting to the matter, General Motors said that the company is surprised and strongly denies the charges filed by the UAW with the NLRB. The company added that it has been very focused on negotiating directly and the charges were an insult to the bargaining committees.
Similarly, Stellantis said that it has not yet received the filing related to the charges and is shocked by Fain’s allegations about not bargaining in good faith. The company expressed disappointment and said that Fain seems to be more focused on “filing frivolous legal charges than on actual bargaining.”
Is GM a Good Stock to Buy?
Wall Street has a Moderate Buy consensus rating on General Motors stock based on seven Buys, six Holds, and two Sells. The average price target of $50.33 implies 50.2% upside. Shares are essentially flat year-to-date.
What is the Price Target for STLA?
With 11 Buys and two Holds, Stellantis stock earns Wall Street’s Strong Buy consensus rating. The average price target of $24.76 suggests 33.5% upside. Shares have advanced over 30% so far this year.
