2023-07-24 08:37:07 ET
The summer of labor drama continues, with tense negotiations between union groups and major companies ongoing in several key industries.
Airline sector: The union representing airline pilots at American Airlines Group ( AAL ) has indefinitely postponed the ratification vote for a tentative contract agreement. The voting on the new labor deal will now take place at a date and time to be determined, the union confirmed over the weekend. American Airlines pilots were due to vote on Monday after the company raised the value of its contract offer to pilots by more than $1B. The Dallas-based carrier said the new changes brought the total value of the four-year proposed contract to $9B and noted it would match the pay rates and retroactive pay in United Airlines' ( UAL ) tentative agreement. Meanwhile, pilots Southwest Airlines ( LUV ) approved strike authorization earlier this year and asked to be released from federal mediation.
Package delivery services sector : United Parcel Service ( UPS ) is expected to resume labor talks with the Teamsters union representing 340,000 employees this week. The talks will come shortly before the July 31 expiration of the old five-year labor contract. "With the contract expiration less than two weeks away, we need to work quickly to finalize a fair deal that provides certainty for our customers, our employees and businesses across the country," read a UPS statement from over the weekend. The International Brotherhood of Teamsters is looking for a five-year agreement that increases pay and full-time jobs, and strengthens protections for workers.
Auto sector: Negotiations between the UAW and lead negotiator Stellantis ( STLA ) began on July 18. UAW President Shawn Fain said the union does not expect the traditional path of opening bargaining and spending a month and a half talking its demands to death. September 14th was noted to be a deadline, not a reference point. The UAW deals for Stellantis ( STLA ), Ford ( F ), and General Motors ( NYSE: GM ) cover roughly 150,000 UAW members. Estimates from Bank of America on a potential UAW strike is for a labor stoppage to cost General Motors ( GM ) $770M or $0.46 in adjusted earnings per share per week, Ford Motor ( F ) $620M or $0.11 in adjusted EPS per week, and Stellantis ( STLA ) $470M or $0.12 in adjusted EPS per week.
More on labor negotiations:
- United's labor deal with pilots is called a step in the right direction
- UPS, Teamsters will return to negotiating table next week as threat of strike looms
- Auto sector wildcard: The UAW contract expiration is looming
For further details see:
Labor strike wildcard hangs over airline, automobile and package delivery sectors