Yes, legacy automaker Ford (NYSE:F) is facing a whole new set of labor troubles, and no, it has absolutely nothing to do with the UAW this time around. Instead, it’s from a whole new and probably much less expected direction. Investors didn’t take the news well and sent Ford down fractionally in Wednesday afternoon’s trading.
This time, the labor trouble is from the back offices. Specifically, members of Unite—which is one of the biggest trade unions in the UK—measuring about 3,000 strong, are planning “industrial action” should Ford not return to the negotiating table. Ford made a pay offer to its white-collar staff already, but the membership of Unite rejected said offer by about 90%. Thus, the Unite members involved put Ford on notice: return to the negotiations or face a strike vote.
Is Ford a Buy or Sell Stock?
Turning to Wall Street, analysts have a Hold consensus rating on Ford stock based on six Buys, seven Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 1.06% rise in its share price over the past year, the average Ford price target of $13.60 per share implies 8.02% upside potential.
