The United Auto Workers returned to the table on day two of a targeted strike against General Motors.NYSE:GM), Ford engine (NYSE:F), and Stellantis (NYSE:STLA). The car union said negotiators had had “reasonably productive” discussions Ford representatives (F). The UAW statement made no mention of the status of talks with General Motors (GM) or Stellantis (STLA). However, Stellantis (STLA) updated Saturday that a proposal to resume work at a idled plant in Illinois has failed.
About 12,700 UAW workers were on strike Saturday, which is less than 10% of the UAW workforce. Both sides have exchanged some of the normal heated comments about the impact on consumers of higher UAW wages, corporate profit sharing and the viability of union demands.
For investors, the UAW strike has played out largely as predicted and will likely last a few months if negotiations proceed similarly to the 2019 strike timeline. Analysts have noted that stock prices of automakers and auto suppliers have already seen some of the ongoing disruption have priced in, although they also warned that a strike lasting more than a few months could reset expectations. In the past, the auto sector as a whole has made up most of the ground lost during work stoppages, and some opportunistic investors have made big gains in the shares of auto suppliers, which recovered after the eventual contract renewals.