Business

More stories

  • 213 Shares199 Views

    in Business

    UAW strike would show Biden, other leaders that it’s time to ‘pick a side,’ union boss says

    by

    A strike against Detroit automakers would help President Joe Biden and other politicians to pick a side when it comes to organized labor, said UAW President Shawn Fain.
    The comments add to the unusual tension between the leader of the historically Democratic union and Biden.
    The UAW is withholding a reelection endorsement for Biden until concerns about the auto industry’s transition to all-electric vehicles are addressed.

    A strike by the United Auto Workers union against the Detroit automakers would help President Joe Biden and other politicians pick a side when it comes to organized labor, UAW President Shawn Fain said Wednesday night.
    “I think our strike can reaffirm to [Biden] of where the working-class people in this country stand and, you know, it’s time for politicians in this country to pick a side,” he said during CNBC’s “Last Call” with Brian Sullivan. “Either you stand for a billionaire class where everybody else gets left behind, or you stand for the working class, the working-class people vote.”

    The outspoken union leader reiterated that striking against General Motors, Ford Motor and/or Stellantis when contracts for roughly 150,000 auto workers expire after 11:59 p.m. Sept. 14 is not the goal, but the sides remain far apart when it comes to key demands.

    UAW President Shawn Fain addresses union members during a Solidarity Sunday rally in Warren, Michigan, Aug. 20, 2023
    Michael Wayland / CNBC

    “We’re down to the wire. We have eight days to go,” Fain said. “We’re pushing. We’re available 24/7 as we have been for the last seven weeks, so it’s up to the companies on where we end up and whether we end up having to take action or not on the 14th.”
    Fain said the union is set to meet Thursday morning with GM, following a Wednesday afternoon meeting with Ford. Stellantis said Wednesday that it “intends to pass the UAW a counter offer to the members’ economic demands by the end of the week.”
    Fain’s comments regarding Biden add to an unusual tension between the leader of the historically Democratic union and the commander in chief, who has called himself “the most pro-union president you’ve ever seen.”
    Earlier this week, Fain said he was “shocked” to hear Biden say he was “not worried about a strike until it happens” and that he didn’t “think it’s going to happen.”

    “He must know something we don’t know. Maybe the companies plan on walking in and giving us our demands on the night before. I don’t know but he’s on the inside on something I don’t know about,” Fain told reporters during a Labor Day event in Detroit.

    The UAW has historically supported Democrats. However, former President Donald Trump was able to gain notable support from blue-collar autoworkers during his presidential campaigns. Fain has said he believes another Trump presidency “would be a disaster,” citing the need for the union to “get our members organized behind a pro-worker, pro-climate, and pro-democracy political program that can deliver for the working class.”
    The UAW is withholding a reelection endorsement for Biden until concerns about the auto industry’s transition to all-electric vehicles such as job security, pay and organizing are addressed, Fain has said previously.
    “Our endorsements are going to be earned not freely given and the actions are going to dictate who we endorse,” Fain reiterated Wednesday.
    Simultaneous strikes against GM, Ford and Stellantis would be unprecedented. It also would mark one of the UAW’s largest strikes in recent history and could quickly have a ripple effect on the automotive supply chain, the U.S. economy and domestic manufacturing.

    Speaking in front of a backdrop of American-made vehicles and a UAW sign, President Joe Biden, then a presidential candidate, speaks about new proposals to protect U.S. jobs during a campaign stop in Warren, Michigan, Sept. 9, 2020.
    Leah Millis | Reuters

    A strike against GM in 2019 during the last round of contract negotiations lasted 40 days and cost the automaker $3.6 billion in earnings that year, GM reported at the time.
    The union’s current demands also could be costly if tentative deals are reached. Key demands include a 40% hourly pay increase, a reduced 32-hour workweek, a shift back to traditional pensions, elimination of compensation tiers, and restoration of cost-of-living adjustments, among other items on the table. More

  • 263 Shares119 Views

    in Business

    Warner Bros. Discovery CEO David Zaslav says writers, actors strikes need to end as media industry is in a transitional moment

    by

    Warner Bros. Discovery CEO David Zaslav said the writers and actors strikes need to end as the media industry is in a transitional moment.
    Earlier this week, Warner Bros. Discovery revised its full-year guidance, and expects earnings to take a hit of up to $500 million assuming the strikes last through year-end.
    Zaslav spoke Wednesday at Goldman Sachs’ Communacopia and Technology conference.

    Warner Bros. Discovery CEO David Zaslav.
    Olivia Michael | CNBC

    The media industry is in a transitional moment — from streaming to traditional TV — and the focus needs to be on ending the writers and actors strikes, Warner Bros. Discovery CEO David Zaslav said on Wednesday.
    “We’re a content company. We’re a storytelling company. And we need to do everything we can to get people back to work,” Zaslav said at Goldman Sachs’ Communacopia and Technology conference. “People need to be fairly compensated.”

    “We really have to focus as an industry, and we are, on trying to get this resolved in a way that’s really fair.”
    The comments came a day after Warner Bros. Discovery alerted investors that it has revised its full-year outlook, factoring in the impact of the actors and writers strikes if they were to continue through year-end. Initially, the company’s guidance was based on the assumption the strikes would be over in September.
    The company now expects its adjusted earnings before interest, taxes, depreciation and amortization will take a hit of $300 million to $500 million, putting it in the full-year range of $10.5 billion to $11 billion.
    Zaslav has been part of the discussions with the Members of the Writers Guild of America union, which has been on strike for more than 100 days, as well as being in talks with the actors’ union, which started its strike in July.
    The work stoppages have halted production on Hollywood sets, affecting companies like Warner Bros. Discovery, which owns a TV and movie studio, as well as the biggest portfolio of pay TV networks.

    On Wednesday, Zaslav spoke about the various issues facing the industry as a whole — from the strikes to theaters still feeling the effects of the pandemic, to the tough advertising market and to bulking up the streaming business.
    The company has been focused on increasing its free cash flow and paying down its debt, much of which stems from the 2022 merger of WarnerMedia and Discovery. The impact of the strikes isn’t expected to affect its debt paydown and net leverage target for the year.
    Warner ended the second quarter with $47.8 billion in debt. In recent months, the company has done two tender offers, both vehicles for paying down its debt.
    On Wednesday, Zaslav said that effort remains the focus of the company as it has made decisions to cut back on costs, adding there are no plans to “jeopardize” the health of the company for any one piece of content.
    Warner Bros. Discovery recently started discussions with the NBA regarding the upcoming rights renewal, he said Wednesday.
    Still, like its peers, Warner Bros. Discovery has been looking for ways to bulk up its streaming business. Max, its flagship streaming service, was relaunched earlier this year.
    Zaslav said the company would have updates in coming weeks on adding sports to Max. CNBC previously reported the company is targeting the beginning of MLB playoffs to debut a sports tier on Max.
    This month Max is adding more content from both Warner Bros. Discovery’s portfolio and other media companies. It also added more than 200 episodes of series from AMC Networks, which will be available in a designated hub — free to Max subscribers — for the next two months.
    Later this month, CNN will join the Max platform as a 24/7 live news hub featuring top anchors from the network. More