UAW Strike Highlights Tension Between Automaker Stock Buybacks and Labor Investments

UAW strike puts focus on automakers' billions in stock buybacks, some investors say focus should shift from buybacks to labor investments
GM, Ford, and Stellantis have spent billions on share repurchases to boost stock prices, irking unions who want higher wages
Investors open to automakers reducing buybacks to reach deal with UAW and invest in workforce, but don't want dividends cut
Reducing or eliminating dividends could trigger stock selloffs and force removal from dividend funds
Prolonged strike costly for automakers; 2019 GM strike cost company $3.6B in earnings, hurt suppliers and local economy

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9/15/2023

UAW Strike Against Auto Giants Raises Concerns Over Margins and Supply Chain as Labor Unrest Spreads

The strike by United Auto Workers against the Big 3 carmakers has sparked concern among stock-market investors over the impact on the economy, supply chains, and corporate profits.