On Wall Street and many other streets around the world, there is an expression money talks. On Wall Street, investors are hoping money talks to them and good results happen, but whether there is a merger or other transaction, the company board or investors on the other side will say show me the money or money talks. If a merger price is considered low, raising the price will sway the suits. In labor relations, it is the same, offer enough money and there is labor peace.

In an article by David Shepardson and Ben Klayman of Reuters, the United Auto Workers (UAW) negotiated with management and then the union has to show the offer to the member of the union. With any large group some want more, others will be happy, and if the union received higher wages and benefits they will believe the higher is the new normal or standard of other companies.

For the UAW, they had a 6 week campaign of targeted strikes and auto companies determined how much money they lost for their workers being on strike and how important it was to settle. The UAW workers received higher wages after years of stagnant wages and a reduction in the tier wage rates. Workers will receive a 25% increase in wages over the life of the contract.

Even with higher wages, 7 of GM’s assembly plants rejected the deal however GM’s largest assembly plant in Arlington, Texas along with plants in Detroit, Fairfax Kansas and Lake Orion, Michigan voted for to have a 55% margins to 45% against. At the time of the writing, 67% of Ford workers and 66% of Stellantis (Chrysler) workers have voted in favor.

Linking to dividend paying stocks, all 3 companies pay dividends and all 3 companies have an important role in the economy for the general public likes cars, trucks and SUVs. For the auto companies trucks and SUVs make the bulk of their profits. Similar to Wall Street, investors like to buy low and sell high and money talks or results matter. All throughout the wage scales money talks.

There are more questions than answers, till the next time – to raising questions.