The Canadian plants of General Motors (NYSE:GM) have until 11:59 p.m. on October 9 to negotiate a new labor contract with the Unifor union. The union represents roughly 4,300 workers at GM’s three plants in Canada. The two parties are undergoing negotiations to sign a tentative agreement in tandem with the deal set between Unifor and Ford’s (NYSE:F) Canadian operations on September 19.
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The three GM plants that are under threat of a strike include Oshawa Operations, St. Catharines Propulsion Plant, and Woodstock Parts Distribution Centre. GM and Unifor began negotiating a contract on September 26, and now the union has set a deadline for the automaker to make a tentative deal. Unifor is demanding increased wages, pensions, health benefits, a reduction in grow-in from eight years to four, and a $10,000 bonus for permanent employees, among others.
Big Three Automakers and Union Strikes
GM is the second target on Unifor’s list out of the Big Three automakers, namely General Motors, Ford, and Stellantis (NYSE:STLA). Unifor has adopted a different approach to demanding their labor terms as against the American union, United Auto Workers (UAW).
The UAW started with simultaneous targeted strikes at all three car makers and has expanded the strikes to multiple locations as of date. Although the Canadian plants are relatively smaller than their U.S. counterparts, they all play a pivotal role in the automakers’ Canadian operations. The UAW intends to announce new strike targets at 10 a.m. Eastern Time on Friday, September 29, in the absence of any favorable developments, with walkouts scheduled to begin at midnight.
Is GM a Good Stock to Buy Today?
Out of the eight Top Analysts who recently rated GM stock, five have given it a Buy rating while three have given it a Hold rating. Top Wall Street analysts are those awarded higher stars by the TipRanks Star Ranking System. This is based on an analyst’s success rate, average return per rating, and statistical significance (number of ratings).
Based on these analysts’ views, GM stock has a Moderate Buy consensus rating. Also, the average General Motors price target of $51.63 implies 55.7% upside potential from current levels. Meanwhile, GM stock has lost 1.2% so far this year.
