ReportWire

Tag: Labor Disputes

  • Republic expects better service this week amid ongoing strike

    Republic Services Inc. and the striking Teamsters Local 25 have still not scheduled any new negotiations sessions as of Sunday afternoon.

    The two parties last negotiated on July 18, without reaching a new contract that would end the now 28-day strike of local waste collection workers.


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    By Caroline Enos | Staff Writer

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  • Still no new negotiation sessions planned in trash strike

    There are still no new negotiation sessions planned as the Teamsters Local 25 strike moves into its 25th day.

    Officials in Peabody, Gloucester, Danvers, Beverly, Canton and Malden also still awaited a decision in their lawsuit against Republic on Thursday afternoon, after filing a joint request for a preliminary injunction last week that would force Republic to carry out all contracted services, if accepted. They appeared in court over the matter Tuesday afternoon.


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    By Caroline Enos | Staff Writer

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  • Trash issues continue to stink

    Thursday marks two dozen days since Republic Services Inc. workers went on strike.

    By Caroline Enos | Staff Writer

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  • Honda joins Toyota in raising U.S. wages for its auto workers as unionization push looms

    Honda joins Toyota in raising U.S. wages for its auto workers as unionization push looms

    Honda Motor Co.’s U.S. unit joined other foreign carmakers in raising their automobile workers’ wages in the wake of historic wins for the United Auto Workers and as the union has vowed to intensify its organizing push.

    Honda
    7267,
    -4.11%

    gave U.S. production workers an 11% raise that will go into effect in January. Honda also cut down the time to reach a top wage from six years to three years, and added benefits, the company said Friday.

    The Wall Street Journal on Friday first reported the raises, citing a memo it had reviewed.

    UAW President Shawn Fain has said numerous times the union wants to expand its base into the nonunionized automobile workforce beyond the Midwest.

    At an address to UAW members in mid-October, for instance, Fain said that the UAW was “going to organize non-union auto companies like we’ve never organized before.”

    Don’t miss: Ford and GM inventories rise despite UAW strike, but demand concerns linger

    U.S. auto workers at foreign carmakers such as Honda and Volkswagen AG
    VOW,
    -1.12%
    ,
    which have their major factories in the Southeast, are not unionized. Neither are auto workers at Tesla Inc.
    TSLA,
    +2.22%
    ,
    which has car-making factories in California and Texas.

    Auto workers went on strike for six weeks starting in mid-September, hitting several factories and facilities of Ford Motor Co.
    F,
    +1.65%
    ,
    General Motors Co.
    GM,
    +0.75%

    and Stellantis NV
    STLA,
    +1.57%
    .

    The labor action, which the UAW dubbed a “stand-up strike,” called on select local unions to stand up and walk out. It marked a break from tradition: Going back decades, the UAW would strike at one company at a time, mostly to save its picket-line firepower and strike fund.

    Related: There’s a new Tesla bear in town: EV maker is a ‘very expensive company,’ HSBC says

    The new strategy yielded big results, including pay raises of around 25% over the life of the four-year contract plus cost-of-living adjustments, the end of several wage tiers, and better retirement benefits.

    At an event Thursday to celebrate the UAW deal and the reopening of a Stellantis factory in Illinois, President Joe Biden seemed to support the UAW’s unionization push.

    “I want this type of contract for all auto workers,” Biden said. “And I have a feeling UAW has a plan for that.”

    During the UAW strike, some Wall Street analysts said that Tesla would benefit from the increased costs to unionized factories following the labor agreements. One analyst noted that even before any wage increases, the Big Three automakers were paying their workers 38% more than comparable Tesla workers earned.

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  • Detroit Is Paying Up to End the UAW Strike. Now Carmakers Will Live With the Costs.

    Detroit Is Paying Up to End the UAW Strike. Now Carmakers Will Live With the Costs.

    Updated Oct. 30, 2023 12:50 pm ET

    The United Auto Workers campaign against Detroit’s three automakers can be described as one thing for the union: a win.

    The strike, now in its seventh week, is nearing its conclusion with General Motors on Monday reaching a tentative labor deal with the UAW following similar pacts with Ford Motor and Chrysler-parent Stellantis.

    Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • WSJ News Exclusive | UAW Expands Strike With GM After Reaching Tentative Agreement With Stellantis

    WSJ News Exclusive | UAW Expands Strike With GM After Reaching Tentative Agreement With Stellantis

    Updated Oct. 28, 2023 10:03 pm ET

    The United Auto Workers called a fresh strike at a General Motors factory in Tennessee, a surprise walkout after negotiators had been working nearly around the clock to finalize a new contract this weekend.

    Workers at GM’s factory in Spring Hill, Tenn., were ordered to go on strike Saturday evening, according to people with knowledge of the union’s plans. The strike came just as the UAW confirmed that it reached a tentative agreement with Chrysler parent Stellantis on a new labor contract.

    Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • Ford’s stock drops 4% after carmaker pulls guidance, EV unit loses $1.3 billion

    Ford’s stock drops 4% after carmaker pulls guidance, EV unit loses $1.3 billion

    Ford Motor Co.’s stock dropped 4% after hours Thursday after the carmaker reported lower-than-expected quarterly earnings and withdrew its guidance for the year, citing the pending agreement with the United Auto Workers.

    Ford
    F,
    -1.65%

    also reported an adjusted loss of $1.3 billion for its EV unit, which was wider than Wall Street expected, saying that customers interested in EVs are “unwilling” to pay the vehicles’ premium prices. The company paused billions of long-term investment in EVs due to that disconnect.

    “Our business is never short of challenges, especially right now with the evolution of the EV market,” Chief Executive Jim Farley told analysts in a call following results.

    Ford earned $1.2 billion, or 30 cents a share, in the third quarter, swinging from a loss of $827 million, or 21 cents a share, in the year-ago period.

    Adjusted for one-time items, Ford earned 39 cents a share. Adjustments included a $2.7 billion impairment charge related to the investment in the shuttered, Ford-backed Argo AI driverless-car company.

    Revenue rose 11% to $43.8 billion, the carmaker said.

    Analysts polled by FactSet expected Ford to report adjusted earnings of 46 cents a share on sales of $43.94 billion.

    Ford said that its EV business segment recorded an EBIT loss of $1.3 billion, thanks to “continued investment in next-generation EVs and challenging market dynamics.”

    Many customers in North America interested in EVs are “unwilling to pay premiums for them,” which “sharply” flattens EV prices and profit, Ford said.

    The carmaker said it was “poised to deliver profitability” within its previous EBIT guidance range of $11 billion to $12 billion before it decided to withdraw the year’s outlook pending the agreement with its workers.

    The results come as striking employees at Ford are returning to work after the carmaker and the United Auto Workers reached a tentative agreement, which was announced late Wednesday.

    The agreement is going through ratification steps, and negotiations between the union and General Motors Co.
    GM,
    -1.59%

    and Stellantis NV
    STLA,
    -2.17%

    are said to be “active.”

    On the call with analysts, Farley said that once the deal is ratified, Ford will provide Wall Street “a deeper look at the contract and its impact on our business.”

    Ford, GM and Stellantis each have had several factories and distribution centers offline due to the strike. GM and Stellantis are expected to follow with agreements of their own.

    Ford was the first company to face walkouts at a key factory, as workers at Ford’s Kentucky pickup-truck plant walked out on Oct. 11.

    GM earlier this week detailed some of the impacts of the strike, particularly through the end of the current quarter, and also withdrew its guidance.

    See also: UAW strike moves to GM’s key SUV plant

    Ford shares have underperformed the broader equity market, and are losing about 1.6% so far this year, which contrasts with gains of around 8% for the S&P 500 index
    SPX.

    The underperformance holds for the past three months, with Ford shares down 16% compared with the index’s 8% drop in the period.

    The union said that the current four-year deal grants a 25% increase in base wages through April 2028. It will cumulatively raise the top wage at Ford by more than 30% to more than $40 an hour, and starting wages by 68% to over $28 an hour.

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  • UAW won’t expand auto workers strike

    UAW won’t expand auto workers strike

    The United Auto Workers said Friday it has made progress in the negotiations with the Big Three carmakers, and didn’t announce any new plants that would expand its ongoing strike.

    Nearly 34,000 workers at Ford Motor Co.
    F,
    +0.95%
    ,
    General Motors Co.
    GM,
    +1.13%

    and Stellantis NV
    STLA,
    -0.37%

    are on strike, with the most recent labor-movement expansion hitting Ford’s highly profitable Kentucky pickup truck factory earlier this month.

    There was “serious movement” in negotiations at GM and Stellantis, UAW President Shawn Fain said Friday in an address to the membership.

    “The bottom line is we’ve got cards left to play and they’ve money left to spend. That’s the hardest part of a strike. Right before a deal, is when there’s the most aggressive push for that last mile,” Fain said.

    Earlier Friday, GM made new proposal to auto workers, reinstating cost-of-living adjustments and offering compounded raises of about 25% over four years.

    Auto workers started the strike at the stroke of midnight Sept. 14, walking out at one plant each of GM, Ford, and Stellantis NV
    STLA,
    -0.37%
    .
    The union expanded the labor action to more factories and facilities as the weeks went by.

    Striking at all Big Three at once was a departure from the long-standing UAW tradition striking at one car company at a time, to save picket-line firepower and the strike fund.

    During his address Friday, Fain vowed to intensify efforts to unionize at more auto plants.

    “We are going to organize non-union auto companies like we’ve never organized before,” he said.

    Tesla Inc.
    TSLA,
    -3.69%

    has for years fended off efforts to unionize its factory in Fremont, Calif. Several foreign automakers have U.S. plants in the Southeast, where union traditions are not as the Midwest.

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  • Ford Executive Chairman Calls for End to UAW Strike

    Ford Executive Chairman Calls for End to UAW Strike

    Updated Oct. 16, 2023 2:28 pm ET

    Ford Motor Executive Chair Bill Ford called for a resolution to an “acrimonious” round of talks with the United Auto Workers and warned that a continuing strike could hurt the company’s ability to keep factory jobs in the U.S.  

    Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • UAW says 8,700 Ford workers have walked off the job at Louisville truck plant

    UAW says 8,700 Ford workers have walked off the job at Louisville truck plant

    In what was described as an unannounced decision, the United Auto Workers union has called a strike at Ford Motor Co.’s
    F,
    +0.41%

    large Kentucky Truck Plant in Louisville, the union said Wednesday.

    The union, in a statement, said that 8,700 union members had walked off the job at 6:30 p.m. Eastern at the plant, which Ford described as its biggest. The union said that the move marked a “new phase” in its ongoing strike, in which select workers have been called on at different times to walk out.

    In a statement, UAW President Shawn Fain said Ford “has not gotten the message.”

    “It’s time for a fair contract at Ford and the rest of the Big Three,” Fain said. “If they can’t understand that after four weeks, the 8,700 workers shutting down this extremely profitable plant will help them understand it.”

    Ford, in a statement, called the decision “grossly irresponsible” and said it had made an “outstanding offer” in the negotiations, which involve the union and the Big Three auto makers.

    Ford said the vehicles made at the factory — the F-Series Super Duty, the Ford Expedition and the Lincoln Navigator – bring in $25 billion a year in sales.

    The automaker said the UAW’s decision “carries serious consequences for our workforce, suppliers, dealers and commercial customers.”

    Fain will host an event on Facebook on Friday to give updates on bargaining. Shares of Ford fell nearly 2% after hours.

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  • Hollywood writers strike declared over after boards approve new contract with studios

    Hollywood writers strike declared over after boards approve new contract with studios

    LOS ANGELES — Leaders of the screenwriters union declared their nearly five-month-old strike over Tuesday after board members approved a contract agreement with studios, bringing Hollywood at least partly back from a historic halt in production.

    The governing boards of the eastern and western branches of the Writers Guild of America and their joint negotiating committee all voted to accept the deal, two days after the tentative agreement was reached with a coalition of Hollywood’s biggest studios, streaming services and production companies. After the vote they declared that the strike would be over and writers would be free to start on scripts at 12:01 a.m. Wednesday.

    Late-night talk shows — the first to go dark when writers walked out on May 2 — are likely the first shows that will resume. Scripted shows will take longer to return, with actors still on strike and no negotiations yet on the horizon.

    The writers still have to vote to ratify the contract themselves in early October, but lifting the strike will allow them to work during that process, the guild told members in an email.

    After Tuesday’s board votes, the contracts were released for the first time to the writers, who had not yet been given any details on the deal, which their leaders called “exceptional.”

    The three-year agreement includes significant wins in the main areas writers had fought for — compensation, length of employment, size of staffs and control of artificial intelligence — matching or nearly equaling what they had sought at the outset of the strike.

    The union had sought minimum increases in pay and future residual earnings from shows of between 5% and 6%, depending on the position of the writer. The studios had wanted between 2% and 4%. The compromise deal was a raise of between 3.5% and 5%.

    The guild also negotiated new residual payments based on the popularity of streaming shows, where writers will get bonuses for being a part of the most popular shows on Netflix
    NFLX,
    -1.44%
    ,
    Max and other services, a proposal studios initially rejected. Many writers on picket lines had complained that they weren’t properly paid for helping create heavily watched properties.

    The writers also got the requirement they sought that shows intended to run at least 13 episodes will have at least six writers on staff, with the numbers shifting based on the number of episodes. They did not get their desire for guaranteed staffs of six on shows that had not yet been ordered to series, settling instead for a guaranteed three.

    Writers also got a guarantee that staffs on shows in initial development will be employed for at least 10 weeks, and that staffs on shows that go to air will be employed for three weeks per episode.

    On artificial intelligence, the writers got the regulation and control of the emerging technology they had sought. Under the contract, raw, AI-generated storylines will not be regarded as “literary material” — a term in their contracts for scripts and other story forms a screenwriter produces. This means they won’t be competing with computers for screen credits. Nor will AI-generated stories be considered “source” material, their contractual language for the novels, video games or other works that writers may adapt into scripts.

    Writers have the right under the deal to use AI in their process if the company they are working for agrees and other conditions are met. But companies cannot require a writer to use AI.

    Still-striking members of the Screen Actors Guild-American Federation of Television and Radio Artists returned to the picket lines earlier Tuesday for the first time since the writers struck their tentative deal, and they were animated by a new spirit of optimism.

    “For a hot second, I really thought that this was going to go on until next year,” said Marissa Cuevas, an actor who has appeared on the TV series “Kung Fu” and “The Big Bang Theory.” “Knowing that at least one of us has gotten a good deal gives a lot of hope that we will also get a good deal.”

    Writers’ picket lines had been suspended, but they were encouraged to walk in solidarity with actors, and many were on the lines Tuesday, including “Mad Men” creator Matthew Weiner, who picketed alongside friend and “ER” actor Noah Wyle as he has throughout the strikes.

    “We would never have had the leverage we had if SAG had not gone out,” Weiner said. “They were very brave to do it.”

    The Alliance of Motion Picture and Television Producers, which represents the studios in negotiations, chose to deal with the longer-striking writers first, and leaders of SAG-AFTRA said they had received no overtures on resuming talks. That’s likely to change soon.

    Actors also voted to authorize their leadership to potentially expand their walkout to  include the lucrative videogame market, a step that could put new pressure on Hollywood studios to make a deal with the performers who provide voices and stunts for games.

    The Screen Actors Guild-American Federation of Radio and Television Artists announced the move late Monday, saying that 98% of its members voted to go on strike against videogame companies if ongoing negotiations are not successful. The announcement came ahead of more talks planned for Tuesday.

    Acting in videogames can include a variety of roles, from voice performances to motion capture work as well as stunts. Video game actors went on strike in 2016 in a work stoppage that lasted nearly a year.

    Some of the same issues are at play in the video game negotiations as in the broader actors strike that has shut down Hollywood for months, including wages, safety measures and protections on the use of artificial intelligence. The companies involved include gaming giants Activision Blizzard
    ATVI,
    -0.05%
    ,
    Electronic Arts
    EA,
    -1.13%
    ,
    Epic Games, Take 2 Productions
    TTWO,
    -0.99%

    as well as Disney
    DIS,
    -1.19%

    and Warner Bros.′
    WBD,
    +0.28%

    videogame divisions.

    “It’s time for the videogame companies to stop playing games and get serious about reaching an agreement on this contract,” SAG-AFTRA President Fran Drescher said in a statement.

    Audrey Cooling, a spokesperson for videogame producers, said they are “continuing to negotiate in good faith” and have reached tentative agreements on more than half of the proposals on the table.

    So far this year, U.S. consumers have spent $34.9 billion on videogames, consoles and accessories, according to market research group Circana.

    The threat of a videogame strike emerged as Hollywood writers were on the verge of getting back to work after months on the picket lines.

    The alliance of studios, streaming services and producers has chosen to negotiate only with the writers so far, and has made no overtures yet toward restarting talks with SAG-AFTRA. That will presumably change soon.

    SAG-AFTRA leaders have said they will look closely at the writers’ agreement, which includes many of the same issues, but it will not effect their demands.

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  • Ford pauses work on $3.5 billion EV battery plant in Michigan

    Ford pauses work on $3.5 billion EV battery plant in Michigan

    Ford Motor Co. said late Monday it has halted work on a $3.5 billion battery factory in Michigan, just days after the carmaker made concessions to its striking workers.

    “We’re pausing work and limiting spending on construction on the [Marshall, Mich.] project until we’re confident about our ability to competitively operate the plant,” a Ford
    F,
    +1.21%

    spokesperson said. “We haven’t made any final decision about the planned investment there.”

    Ford said in February it was investing $3.5 billion to build the facility in Marshall, about 100 miles west of Detroit. The plant, which Ford called BlueOval Battery Park Michigan, is part of Ford’s “commitment to American manufacturing,” the company said then.

    The plant was expected to employ about 2,500 workers at the start of production, scheduled for 2026. The $3.5 billion investment is part of Ford’s commitment to invest more than $50 billion in electric vehicles globally through that year.

    Employees in some parts of a Michigan Ford plant making Broncos and Rangers have been on strike since Sept. 14, part of a first wave of United Auto Workers’ labor action also hitting one plant each of General Motors Co.
    GM,
    +1.47%

    and Stellantis NV
    STLA,
    -0.57%

    after the union’s contract expired without progress in the negotiations.

    Read more: UAW strike: 5 things to know

    The UAW on Friday expanded the strike to 38 GM and Stellantis distribution centers across 20 states, but didn’t extend the labor action at Ford because it said it had won some concessions for the automaker, such as a return of cost-of-living adjustments.

    Ford was showing the UAW that it was “serious about reaching a deal,” union leadership said at the time.

    The strike comes at a time the legacy automakers are stretched thin to make investments in EVs, with batteries an especially critical — and pricey — components.

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  • UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    The United Auto Workers on Friday expanded its strike to 38 General Motors Co. and Stellantis NV auto-parts distribution centers in 20 states, hobbling the two carmakers’ repair networks.

    UAW President Shawn Fain said that the union has made “some real progress” in negotiations with Ford Motor Co.
    F,
    +1.89%
    ,
    which agreed to cost-of-living increases, some job protections and other concessions, and it won’t be striking at additional Ford plants.

    “Ford is showing us they are serious about reaching a deal,” Fain said.

    Nearly 13,000 UAW members have been on strike since last Friday at a Missouri GM plant making GMC Canyons and Colorados, an Ohio Stellantis plant making Jeep Wranglers and Gladiators, and portions of a Michigan Ford plant making Broncos and Rangers.

    Joining them are 3,475 workers at 18 GM fulfillment centers and 2,150 workers at 20 Stellantis centers across the U.S. The workers at the auto-parts distribution centers started to walk off at noon Eastern on Friday.

    GM said that the strike’s “escalation” was “unnecessary.”

    “We have contingency plans for various scenarios and are prepared to do what is best for our business, our customers, and our dealers,” the company said in a statement Friday. “We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”

    Don’t miss: Tesla may be the winner of the Big Three labor woes

    Stellantis said later Friday that it made a “very competitive offer” on Thursday that included a pay raise of 21% over the four-year life of the contract for some of its full-time hourly workers and a “significant product allocation that allows for workforce stability through the end of the contract.”

    “And yet, we still have not received a response to that offer. We look forward to the UAW leadership’s productive engagement so that we can bargain in good faith to reach an agreement that will protect the competitiveness of our company and our ability to continue providing good jobs,” said Stellantis, which was formed in 2021 with the merger of Fiat Chrysler and France’s Groupe PSA and is headquartered in the Netherlands.

    Meanwhile, Wall Street seemed encouraged by the progress with Ford negotiations.

    That was “encouraging,” suggesting that the Big Three could “perhaps reach a labor agreement sooner than some have been expecting,” measured in days and weeks and not months, Citi analyst Itay Michaeli said in a note Friday. The new strikes at auto-parts distribution facilities would likely immediately impact “a relatively smaller yet high-margin revenue stream” for GM, Michaeli said.

    A potential parts shortage could add pressure on the carmakers to reach an agreement sooner, he said. Compared with the possibility of strike at full-size truck plants, at the heart of the automakers’ profits, however, “today’s update seems somewhat more encouraging.”

    Wedbush analyst Dan Ives called the UAW action “an aggressive move that essentially goes at the hearts and lungs of auto operations for GM and Stellantis.”

    A settlement with Ford is likely over the coming week, Ives said. “The UAW and GM/Stellantis now have crossed the invisible line and the UAW strike is about to get a lot nastier.”

    Since the strike began, the union and the automakers have said they are engaging in constant talks as they try to reach a compromise on a new national contract.

    The union is demanding wage increases, an end to tiers, the restoration of pensions and cost-of-living adjustments and other concessions. Although both the union and companies have claimed progress during talks, GM President Mark Reuss said in a recent opinion piece in the Detroit Free Press that the UAW’s demands are “untenable.” That’s in line with Ford President Jim Farley’s characterization of the union’s wage proposal as “unsustainable” for the company before the strike deadline.

    Fain mentioned Reuss’s “untenable” comment in his update Friday via webcast. GM and Stellantis “are going to need some serious pushing” to meet union demands, he said.

    See: 5 things to know about the UAW strike


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  • A 96-year-old federal judge is fighting to keep her job

    A 96-year-old federal judge is fighting to keep her job

    As Americans debate whether President Joe Biden, at 80, is too old to run for a second term, here comes the story of a 96-year-old federal appeals court judge fighting to keep her job.

    Pauline Newman, a judge based in Washington, D.C., was suspended from her job earlier this week under an order from the Judicial Council of the Federal Circuit.

    The order praised Newman for serving “with distinction” over her nearly 40-year tenure and for being “a highly valued and respected colleague,” especially in regards to her work relating to the U.S. patent system. But it also pointed to “evidence of memory loss, confusion, and lack of comprehension” in the judge’s work.

    “Unfortunately, earlier this year mounting evidence raised increasing doubts about whether Judge Newman is still fit to perform the duties of her office,” the order said.

    Newman, who was appointed to the job in 1984 by President Ronald Reagan, has refused “multiple requests to discuss the matter,” according to the order. It was also noted that the judge “was responsible for extensive delays in resolving cases and appeared unable to complete her opinions in a timely fashion” despite a reduced workload.

    According to ABC News, Newman has “pushed back against allegations” and has said that she wants to resolve the matter in a cooperative way. ABC News also reported that Newman’s attorney, Greg Dolin, plans to fight the issue and will file a petition for review with the Committee on Judicial Conduct and Disability.

    MarketWatch reached out to Dolin for comment but didn’t receive an immediate response.

    Newman is not the oldest person to have served as a federal judge. That honor goes to Wesley E. Brown, who was still on the bench a month before his death in 2012 at the age of 104.

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  • UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    The United Auto Workers on Friday expanded its strike to 38 General Motors Co. and Stellantis NV auto-parts distribution centers in 20 states, hobbling the two carmakers’ repair networks.

    UAW President Shawn Fain said that the union has made “some real progress” in negotiations with Ford Motor Co.
    F,
    +1.89%
    ,
    which agreed to cost-of-living increases, some job protections and other concessions, and it won’t be striking at additional Ford plants.

    “Ford is showing us they are serious about reaching a deal,” Fain said.

    Nearly 13,000 UAW members have been on strike since last Friday at a Missouri GM plant making GMC Canyons and Colorados, an Ohio Stellantis plant making Jeep Wranglers and Gladiators, and portions of a Michigan Ford plant making Broncos and Rangers.

    Joining them are 3,475 workers at 18 GM fulfillment centers and 2,150 workers at 20 Stellantis centers across the U.S. The workers at the auto-parts distribution centers started to walk off at noon Eastern on Friday.

    GM said that the strike’s “escalation” was “unnecessary.”

    “We have contingency plans for various scenarios and are prepared to do what is best for our business, our customers, and our dealers,” the company said in a statement Friday. “We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”

    Don’t miss: Tesla may be the winner of the Big Three labor woes

    Stellantis said later Friday that it made a “very competitive offer” on Thursday that included a pay raise of 21% over the four-year life of the contract for some of its full-time hourly workers and a “significant product allocation that allows for workforce stability through the end of the contract.”

    “And yet, we still have not received a response to that offer. We look forward to the UAW leadership’s productive engagement so that we can bargain in good faith to reach an agreement that will protect the competitiveness of our company and our ability to continue providing good jobs,” said Stellantis, which was formed in 2021 with the merger of Fiat Chrysler and France’s Groupe PSA and is headquartered in the Netherlands.

    Meanwhile, Wall Street seemed encouraged by the progress with Ford negotiations.

    That was “encouraging,” suggesting that the Big Three could “perhaps reach a labor agreement sooner than some have been expecting,” measured in days and weeks and not months, Citi analyst Itay Michaeli said in a note Friday. The new strikes at auto-parts distribution facilities would likely immediately impact “a relatively smaller yet high-margin revenue stream” for GM, Michaeli said.

    A potential parts shortage could add pressure on the carmakers to reach an agreement sooner, he said. Compared with the possibility of strike at full-size truck plants, at the heart of the automakers’ profits, however, “today’s update seems somewhat more encouraging.”

    Wedbush analyst Dan Ives called the UAW action “an aggressive move that essentially goes at the hearts and lungs of auto operations for GM and Stellantis.”

    A settlement with Ford is likely over the coming week, Ives said. “The UAW and GM/Stellantis now have crossed the invisible line and the UAW strike is about to get a lot nastier.”

    Since the strike began, the union and the automakers have said they are engaging in constant talks as they try to reach a compromise on a new national contract.

    The union is demanding wage increases, an end to tiers, the restoration of pensions and cost-of-living adjustments and other concessions. Although both the union and companies have claimed progress during talks, GM President Mark Reuss said in a recent opinion piece in the Detroit Free Press that the UAW’s demands are “untenable.” That’s in line with Ford President Jim Farley’s characterization of the union’s wage proposal as “unsustainable” for the company before the strike deadline.

    Fain mentioned Reuss’s “untenable” comment in his update Friday via webcast. GM and Stellantis “are going to need some serious pushing” to meet union demands, he said.

    See: 5 things to know about the UAW strike


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  • Where the Strike Stands. What Auto Makers and UAW Say.

    Where the Strike Stands. What Auto Makers and UAW Say.

    UAW workers went on strike in the early morning hours on Friday at the GM Wentzville Assembly plant in Wentzville, Mo.


    Photograph by Nick Schnelle

    The United Auto Workers’ strike against the three auto makers with roots in Detroit starts the week with pl…

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  • UAW strike sets the stage for the 4-day work week — and a win could take it mainstream

    UAW strike sets the stage for the 4-day work week — and a win could take it mainstream

    Striking United Auto Workers want better wages, improved job security, retiree pay increases, and a 32-hour work week that could turbocharge broader acceptance of shorter work weeks.

    Right now, nearly 13,000 UAW workers have walked off the job at Ford Motor Co.
    F,
    -0.08%
    ,
    General Motors Co.
    GM,
    +0.86%

    and Jeep and Chrysler parent Stellantis
    STLA,
    +2.18%
    ,
    still considered the influential Big Three for car makers.

    If the union gets a win from on its 32-hour work week demand, that could be a big deal for momentum behind the broader four-day work week movement, experts say.

    Four days of work is “still in the early-adoption phase,” said Alex Soojung-Kim Pang, director at Four Day Week Global, where he advises companies considering how to implement a curtailed traditional work week.

    A UAW win on the 32-hour demand “would help move the four-day week from being something you do if you have a bold leader and you want to stand out in your industry, to a mainstream aspiration for every worker and business owner,” said Soojung-Kim Pang.

    “A lot more people can look at the four-day week and say if they are doing this in an auto factory, I absolutely can do it here in my small plant, or in my business,” he added.

    Even if the 32-hour work week doesn’t make it to the final deal, it’s a “game changer” that the demand is there at all, he said. The demand could plant the idea in labor talks far beyond the UAW-company standoff.

    A UAW win on the 32-hour week would cause a “massive reverberation,” said Cathy Creighton, of Cornell University’s School of Industrial and Labor Relations.

    The demand’s presence is a sign of the COVID-19 pandemic’s lasting effects, said Creighton. While five days of in-person office attendance seems like a thing of the past, “we’ve had fundamental changes in how workers and employers view work life and work-life balance.”

    Many factory workers may not be able to pull off remote work but they can press for a shortened week on the physically demanding work, she noted. Historically, the UAW was one of the first unions to deliver health benefits, vacation and pensions for its members, she noted.

    “I think the labor movement has been playing it safe for a long time, and now they are not,” Creighton said. The UAW’s 32-hour work week demand is a prime example, she said. “The five-day work week is so ingrained in our psyche that to think of something different is like an earthquake.”

    Some research indicates people are ready for a shake-up. Nearly six in 10 people who work five days say they would prefer four 10-hour days, according to an August poll in an ongoing look at worker attitudes run by academic researchers.

    “We all know that living in a plant seven days a week, 12 hours a day, isn’t a living at all. We need real work-life balance. Auto workers deserve a life,” UAW president Shawn Fain told members in a video update days before the targeted strike.

    Roughly 12,700 UAW members so far have walked off the job at a Ford Motor plant in Michigan, a GM plant in Missouri and an Ohio plant for Stellantis NV, the maker of brands like Dodge, Chrysler, Jeep and Ram Trucks.

    Of course, there’s no guarantee how far the demand gets. The companies have counter proposals for the array of union asks, as a chart shows from researchers at Evercore ISI. They don’t yet have counters on the 32-hour work week.

    Switching to a 32-hour week with a 40-hour pay rate would be a sharp labor cost on top of the wage increases the UAW is already seeking, a Stellantis spokeswoman said. It would require hiring at least 25% more workers to stick with current manufacturing schedules, she said.

    “We are extremely disappointed by the UAW leadership’s refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families and our customers,” the company said in a statement.

    In a statement, GM said it was “disappointed by the UAW leadership’s actions, despite the unprecedented economic package GM put on the table, including historic wage increases and manufacturing commitments.”

    Ford did not respond to a request for comment.

    “It’s a big game of chess that Shawn Fain is playing. We’ll see how it turns out,” Creighton said.

    “Even if they don’t get the four-day week this time, there are going to be other moves in this game in the future,” from the UAW and beyond, Soojung-Kim Pang said.

    “Even if you have to give on the four-day week now, that doesn’t mean you give on the four-day week as an ideal or a goal.”

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  • GM and Ford’s stocks are higher as UAW strike kicks off. Their bonds tell a different story.

    GM and Ford’s stocks are higher as UAW strike kicks off. Their bonds tell a different story.

    Ford Motor Co.’s and General Motors Co.’s stocks were higher Friday as workers kicked off a strike, but their bonds have been under selling pressure for some time.

    Nearly 13,000 U.S. auto workers went on strike early Friday after the three automakers and the UAW failed to reach an agreement before their national contract expired just before midnight.

    The union has opted for targeted strikes, so workers at a Ford
    F,
    -0.04%

    plant in Michigan and a GM
    GM,
    +0.83%

    plant in Missouri were first to down tools, along with workers at a Stellantis N.V.
    STLA,
    +2.12%

    plant in Ohio.

     UAW President Shawn Fain has said others could join later and asked all 150,000 members to be ready if and when they’re called to strike.

    The strike at all three U.S. carmakers is a break with tradition, as the union for many years has elected to center strike efforts at one company to protect its strike fund and picket-line firepower.

    For more, read: UAW strike: 12,700 Ford, GM and Stellantis auto workers walk off the job

    Ford’s stock was last up 0.5%, while GM was up 1.4%.

    But as the following charts from data solutions company BondCliQ Media Services shows, the bonds have seen far more selling than buying over the last 10 days. Bondholders are often viewed as “smarter” than shareholders, because they tend to be laser-focused on a company’s financials and cash flows, to ensure they will be repaid their principal when bonds mature.


    Net customer flow of Ford and GM bonds (last 10 days). Source: BondCliQ Media Sources

    The next chart shows that Ford has seen more selling than GM.


    Ford and GM’s debt trading volumes (last 10 days). Source: BondCliQ Media Services


    Most-active Ford issues with net customer flow (last 10 days). Source: BondCliQ Media Services


    Most-active General Motors issue with net customer flow (last 10 days). Source: BondCliQ Media Services

    Stellantis, meanwhile, was seeing strong buying of its U.S. dollar-denominated bonds. The company, the former Fiat Chrysler, has far less debt than Ford and GM.

    Stellantis has about $26.5 billion of total debt, according to FactSet data, about $19.7 billion of which is in bonds.

    Ford has $143 billion of debt and $124 billion of bonds. GM has $118 billion of debt, with about $107 billion in bonds, according to FactSet.


    Most active Stellantis NV issues (USD) with net customer flow (last 10 days). Source: BondCliQ Media Services

    Fitch Ratings said earlier Friday the strike will have a limited financial impact on the auto makers, at least for now with just three plants striking.

    “It seems likely the UAW will try to ratchet up pressure on the automakers over time by shifting the strike to more impactful plants and adding more plants to the strike,” Stephen Brown, a senior director at Fitch, said in emailed comments. “The impact on the automakers of striking individual plants could be similar to the semiconductor-induced disruptions that we saw over the past few years.”

    See also: Big Three need to step up for the automotive workers who keep them profitable

    Fitch had already incorporated the potential impact of strikes in its recent decision to upgrade its ratings of Ford and GM, he said. The agency moved Ford to BBB- from BB+, moving it back into investment trade from speculative, or “junk,” status.

    “Ford, GM and Stellantis all have robust liquidity positions that will help them to withstand a potentially drawn-out period of production disruption. Based on June 30 figures, we estimate Ford has over $50 billion of cash and credit facility capacity, while GM has nearly $40 billion,” said Brown.

    Stellantis stock was up 2.2% Friday and has gained 36% in the year to date, outperforming GM’s 1.2% gain and Ford’s 9.0% gain. The S&P 500
    SPX
    has gained 17% in the same time frame.

    For live coverage of the UAW strikes, click here.

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  • UAW strike: Ford, GM, Stellantis record profits haven’t been shared fairly with workers, Biden says

    UAW strike: Ford, GM, Stellantis record profits haven’t been shared fairly with workers, Biden says

    President Joe Biden on Friday offered his support to the United Auto Workers, as he addressed their strike aimed at the Big Three auto makers.

    Auto companies have seen record profits because of the “extraordinary skill and sacrifices” of UAW workers, Biden said in a brief speech at the White House.

    “Those record profits have not been shared fairly, in my view, with those workers,” the president added.

    “The companies have made some significant offers, but I believe they should go further to ensure record corporate profits mean record contracts for the UAW,” he also said.

    Biden gave his remarks after about 12,700 workers went on strike early Friday as their union and the Big Three automakers failed to reach an agreement before a contract expired.

    It’s a targeted strike at a Ford Motor 
    F,
    -0.08%

    plant in Michigan, a General Motors 
    GM,
    +0.86%

    plant in Missouri and a Stellantis NV 
    STLA,
    +2.18%

    plant in Ohio.

    The UAW so far has not endorsed Biden’s re-election bid, even as the AFL-CIO and other big unions have lined up behind the Democratic incumbent.

    The presidential race in 2024 could be a rematch of 2020’s contest between Biden and former President Donald Trump, who has won over some union households that historically have backed Democrats like Biden rather than Republicans.

    See: Here are the Republicans running for president

    Biden got more support than Trump from union households in the battleground states of Michigan and Wisconsin in 2020, but Trump got more support from such households in Ohio and Pennsylvania, according to Edison Research exit polls.

    Trump has seized on concerns that the car industry’s shift toward electric vehicles
    CARZ,
    which the Biden administration has promoted, could hurt American workers. “The all Electric Car is a disaster for both the United Auto Workers and the American Consumer,” the former president said Friday in a post on his Truth Social platform.

    On Friday, Biden said he hopes the UAW and car companies “can return to the negotiation table to forge a win-win agreement,” and he said he’s sending two administration officials to Detroit — Julie Su, the acting secretary of labor, and Gene Sperling, a senior adviser.

    GM posted a 2022 net profit of $11.04 billion, up from $10.38 billion in 2021, while Ford recorded a 2022 net profit of $7.62 billion, up from $6.43 billion in the prior year. For Stellantis, the parent company for brands such as Chrysler, Dodge and Jeep, last year’s net profit was $17.83 billion, up from $15.12 billion.

    UAW President Shawn Fain said in a statement after Biden’s speech that union members “agree with Joe Biden when he says ‘record profits mean record contracts.’” 

    Fain also said: “Working people are not afraid. You know who’s afraid? The corporate media is afraid. The White House is afraid. The companies are afraid.”

    Now read: Tesla may be the winner of the Big Three labor woes

    And see: Will the UAW strike push up car prices?

    Plus: UAW strike to have limited impact on Big Three, Fitch says

    Claudia Assis contributed.

     

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  • An Investor’s Guide to Navigating a UAW Strike

    An Investor’s Guide to Navigating a UAW Strike

    The UAW could start soon, though it might not hurt the shares of GM and Ford.


    Jeff Kowalsky/Bloomberg

    The labor contract between the United Auto Workers and the Detroit-Three automakers expired at midnight on Thursday. A deal isn’t done and the union will …

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