The strike-ending labor agreements between the United Auto Workers and the Big Three auto makers may not be a done deal.
Ford’s
(ticker: F) production workers at its Louisville assembly and Kentucky trucks plants voted against the proposed contract late Sunday. The UAW Local 862 union said 55% of production workers voted against the deal, while 69% of skilled trades workers voted for the new contract, in a post on Facebook. The local branch didn’t reveal the overall percentage result.
The majority of workers at each auto maker need to approve the deals for them to be ratified. The UAW will reveal the final results but some local union branches have been disclosing theirs.
UAW workers at
General Motors
’ Flint, Michigan plant voted to reject the tentative contract agreement, too, at the end of last week. The UAW Local 598 union said 53% of production workers voted against the deal, yet 65% of skilled trades workers were in favor of the deal. Overall, 52% voted against the proposal.
Separately, production workers at the Flint engine operations plant voted against the deal but four other units were strongly in favor, UAW Local 659 said.
The first vote, of UAW Local 900 workers at Ford’s Michigan assembly plant, was overwhelmingly in favor of the deal with 82% accepting the proposal.
With some unions posting results and others not, it’s hard to say whether the deals are at risk of being rejected. But with more votes by
Stellantis
(STLA), Ford, and GM workers to come, investors will be watching for more signs of doubt.
Write to Callum Keown at callum.keown@barrons.com
Read the full article here