Ford Motor (F) -) and General Motors (GM) -) shares were active Friday after the United Autoworkers' Union launched a historic strike on the Big Three U.S. automakers amid a bitter pay dispute.
The UAW targeted all three of the main U.S. automakers for strike action for the first time in the union's history, unveiling the plans around two hours before the end of a four-year contract at midnight U.S. Eastern on Thursday.
The 146,000 members of the UAW had had originally backed a 46% pay increase, spread over the next 4 1/2 years, before retreating to a demand of around 40%. That, however, still falls well ahead of the 20% increase offered earlier this week by Ford. GM's offer was also pegged at 20% and Jeep-Chrysler owner Stellantis (STLA) -) at 17.5%.
The UAW is also seeking a reduced 32 hour work week, the removal of pay-level tiers and a a return to cost-of-living adjustment payments linked to inflation.
Around 12,700 workers will picket assembly sites around the mid-west, including Ford's plant Wayne, Mich., a GM facility in Wentzville, Mo., and a Jeep plant, owned by Stellantis, in Toledo, Ohio.
No talks between the two sides are expected for today.
President Joe Biden appeared to side with the UAW in remarks from the White House on Friday, saying that record profits haven't been shared fairly.
"Strong unions are critical for a growing economy, and that's especially true when we're transitioning to a green energy futures," the President said during a televised address. "Workers deserve a fair share of the profits they've helped create through their enterprise. Record corporate profits should be matched by record contracts."
“Tonight, for the first time in our history, we will strike all three of the Big Three at once,” said UAW President Shawn Fain. “This strategy will keep the companies guessing. It will give our national negotiators maximum leverage and flexibility in bargaining. And if we need to go all out, we will. Everything is on the table.”
GM Chief Executive Mary Barra said her company had made a "historic" offer to the UAW, telling CNBC that she was "extremely frustrated and disappointed" that the talks had reached the point where industrial action was necessary.
"This will not be good for the economy overall, and especially in cities where these (targeted) plants are located," Barra said.
Ford shares were marked 0.5% higher following the strike action in early Friday trading to change hands at $12.68 each. GM shares, meanwhile, were marked 1.2% higher at $34.07 each
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