Stock Plunges Could Reflet on UAW Talks with GM, Ford and Chrysler

Ford, Chrysler and GM might find themselves in a rather difficult position regarding the talks with the UAW. Judging by the way things are looking for the moment there seem to be some difficult times ahead.The steep declines in the stock market will put significant pressure on UAW labor negotiators which will force workers to recognize the shaky reality of the nation’s economy, explained Sean McAlinden, senior economist of Center for Automotive Research.

The situation took an unexpected turn when all thee major US stock indexes plunged. Just when GM, Ford and Chrysler find themselves in the middle of renegotiating a labor contract for 112,000 workers which expires on September 14.“It’s at least as big of a deal as the profitability of the Detroit Three. It basically determines the whole environment.”Sean McAlinden Senior Economist of Center for Automotive Research, was quoted as saying by Detroit Free Press.

Also expectations among workers for gains in this round of talks with GM, Ford and Chrysler have increased as a response to the car manufacturer’s reported profits. This year, GM and Ford managed to add about 10,000 US jobs this year, the first time new workers had been added since 2008.

“If the market continues to recover, we are confident that GM will hire new workers to meet the strong demand for the products our UAW members build.”UAW Vice President Joe Ashton said in a statement in May, he was quoted as saying by the aforementioned source.