On Friday, General Motors (NYSE:GM) announced its plans to increase employment next year, despite concerns raised by autoworkers regarding the potential reduction in labor demand due to the transition towards electric vehicles. GM's manufacturing chief, Gerald Johnson, confidently stated that he disagrees with the notion that EV production will require fewer workers.
"We actually expect our employment numbers to grow in 2024," Johnson said
Last month, General Motors, Ford Motor Company (NYSE:F), and Chrysler-parent Stellantis NV (NYSE:STLA) entered contract negotiations with the United Auto Workers (UAW) union in anticipation of the current four-year labor deals expiring on September 14.
On Friday, CFRA Research downgraded GM, citing concerns about the possibility of a strike following the UAW's request for pay and benefit increases. The UAW is reportedly seeking a pay hike of more than 40%, including an initial 20% hike and 5% annual wage hikes starting in September 2024.
Stellantis said on Friday it intends "to fairly reward our represented employees for their contributions to the success of the Company. However, it will be critical to find common ground that doesn’t jeopardize our ability to continue investing."
Shares of GM are up 0.92% in afternoon trading Monday.