{"id":65548,"date":"2023-09-26T07:04:19","date_gmt":"2023-09-26T11:04:19","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/why-ford-has-been-more-willing-to-work-with-the-uaw-than-gm-or-stellantis\/"},"modified":"2023-09-26T07:04:22","modified_gmt":"2023-09-26T11:04:22","slug":"why-ford-has-been-more-willing-to-work-with-the-uaw-than-gm-or-stellantis","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=65548","title":{"rendered":"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis."},"content":{"rendered":"
\n
<\/p>\n

<\/p>\n

<\/p>\n<\/figure><\/div>\n

\n Ford Motor
\n is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a good thing for the stock down the road. <\/p>\n

Ford (ticker F) is on a labor roll. The United Auto Workers didn\u2019t expand its strike against the company Friday, citing progress made. The union opted to strike at more
\n General Motors
\n (GM ) and
\n Stellantis
\n (STLA) facilities. Canadian auto workers represented by Unifor ratified a new labor agreement with Ford on Sunday. No strike was needed. <\/p>\n

\n

\u201cHistorically Ford has had the best relationship with the UAW and has probably done a better job communicating with the union,\u201d says Benchmark analyst Mike Ward. \u201cEventually, the agreements end up similar but Ford has the most US employees so it makes sense for it to try to set the agreement aligned with its needs.\u201d <\/p>\n

His people-point is interesting. Ford has about 173,000 employees worldwide, about 86,000 in the U.S. Of the 86,000, about 57,000 are represented by the UAW. About 33% of Ford employees are UAW. <\/p>\n

That number for GM is about 28%. It has about 167,000 employees worldwide, about 92,000 in the U.S., and about 46,000 U.S. workers represented by unions. The vast majority of the unionized employees are represented by the UAW. Stellantis has about 300,000 employees globally. About 95,000 are in North America and of those about 41,000 are represented by the UAW. Only about 14% of Stellantis workers are represented by the UAW. <\/p>\n

Keeping a lot of workers happy is a good idea. What\u2019s more, if Ward is right and U.S. labor agreements are very similar then having the best relationship with the same costs is an advantage. <\/p>\n

Stellantis has its own advantage in UAW negotiations. Most of its operations are outside of the U.S. The Chrysler parent generated $191 billion in 2022 global sales. Less than half came from North America, according to FactSet. GM generated about $144 billion in automotive sales in 2022. Almost 90% came from North America. (GM does have joint venture income from China.) Ford, for its part, generated about $149 billion in auto sales in 2022 with more than 70% generated in North America. <\/p>\n

There is simply more at stake for GM and Ford given how the businesses have developed. That\u2019s another reason to pay closer attention to UAW relationships. <\/p>\n

Still, Ford is doing a little better than GM lately. \u201cCould be the family trying to make up for the fraught history between the company and the union or just because they think about the issue differently,\u201d says Datatrek cofounder and former auto analyst Nicholas Colas. \u201cFord could just be trying to preserve the relationship now.\u201d <\/p>\n

Ford\u2019s reputation with labor wasn\u2019t always positive. Company founder Henry Ford was anti-union. What\u2019s more, Ford was the last of the major auto makers to agree to a contract with the UAW in 1941. <\/p>\n

Ford CEO Jim Farley appears to see things differently than Henry Ford or his current CEO peers. GM CEO Mary Barra and Stellantis CEO Carlos Taveres value labor relations too, but Farley speaks a little differently. He doesn\u2019t typically mix the needs of the corporation in when he\u2019s talking about the needs of employees. <\/p>\n

\u201cFord stands apart from all the other automakers and most other major industrial companies,\u201d said CEO Jim Farley on the company\u2019s second-quarter earnings conference call in July. \u201c\u2018We believe, as [UAW leadership does], that Ford should do our part to support the middle class, create vibrant communities, and build a strong American and industrial base.\u201d <\/p>\n

GM\u2019s message is a little different. \u201cWhere our employees are at right today, it\u2019s a good middle-class wage, that we\u2019ll work through the negotiations and manage that and manage the overall cost like we do every time,\u201d said Barra in November 2022. Barra added in a September 14 video that GM has made \u201ccompelling and unprecedented\u201d offers and that the company has been bargaining \u201cin good faith.\u201d pointing out that GM is trying to compete against non-unionized auto makers around the globe. <\/p>\n

Tavares mentions the competitive landscape too when talking about labor. \u201cIt is important for our employees that we protect not only the profitability of the company that led to the payment of $14,000 of performance bonus on the basis of the 2022 results,\u201d he said on his company\u2019s results call in July. <\/p>\n

Maybe Ford\u2019s current advantage boils down to management personality. <\/p>\n

Whatever the reason, it hasn\u2019t really shown up in Ford stock yet. Ford shares are up about 5% over the past 12 months, while the
\n S&P 500
\n is up about 18% over the same period. GM stock is down 5%. Ford is better than that, but Stellantis shares are up about 57%. <\/p>\n

Ford stock trades for about 6.6 times estimated 2024 earnings. Better than the 4.8 times multiple of GM stock and the 3.4 times multiple of Stellantis shares. That\u2019s one thing Ford can boast about. Still, a multiple below 7 times isn\u2019t very good. The S&P 500 trades for about 17.7 times estimated 2024 earnings. <\/p>\n

Strong labor relations can\u2019t hurt, but they don\u2019t determine the direction of car stocks in the short or long-run. That might be a lesson for the UAW. How the car stocks trade is a reflection of how investors view the health of the overall industry.<\/p>\n

Both sides should want to participate in a healthy, growing industry.<\/p>\n

Write to Al Root at allen.root@dowjones.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Ford Motor is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a good thing for the stock down the road. Ford (ticker F) is on a labor roll. The United Auto Workers didn\u2019t expand its strike against the company Friday, citing progress […]<\/p>\n","protected":false},"author":1,"featured_media":65549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-65548","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nWhy Ford Has Been More Willing to Work With the UAW Than GM or Stellantis. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Ford Motor is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=65548\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Ford Motor is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=65548\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-26T11:04:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-26T11:04:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/1695726260_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=65548#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=65548\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis.\",\"datePublished\":\"2023-09-26T11:04:19+00:00\",\"dateModified\":\"2023-09-26T11:04:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=65548\"},\"wordCount\":911,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=65548#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=65548\",\"url\":\"https:\/\/ifintechworld.com\/?p=65548\",\"name\":\"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-09-26T11:04:19+00:00\",\"dateModified\":\"2023-09-26T11:04:22+00:00\",\"description\":\"Ford Motor is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=65548#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=65548\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=65548#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis. | iFintechWorld","description":"Ford Motor is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=65548","og_locale":"en_US","og_type":"article","og_title":"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis. | iFintechWorld","og_description":"Ford Motor is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a","og_url":"https:\/\/ifintechworld.com\/?p=65548","og_site_name":"iFintechWorld","article_published_time":"2023-09-26T11:04:19+00:00","article_modified_time":"2023-09-26T11:04:22+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/1695726260_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=65548#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=65548"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis.","datePublished":"2023-09-26T11:04:19+00:00","dateModified":"2023-09-26T11:04:22+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=65548"},"wordCount":911,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=65548#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=65548","url":"https:\/\/ifintechworld.com\/?p=65548","name":"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-09-26T11:04:19+00:00","dateModified":"2023-09-26T11:04:22+00:00","description":"Ford Motor is avoiding the worst of unions\u2019 wrath in heated 2023 labor negotiations. That should have investors asking why. And asking whether that\u2019s a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=65548#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=65548"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=65548#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Why Ford Has Been More Willing to Work With the UAW Than GM or Stellantis."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/65548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65548"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/65548\/revisions"}],"predecessor-version":[{"id":65550,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/65548\/revisions\/65550"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/65549"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}