Shares of General Motors are pulling back from their highs of the session following the walkout of United Auto Workers after 9 days of labor negotiations failed to produce a new contract. The stock quickly gained nearly 4% on the open, with many traders hoping for a resolution and a new contract before the 11:00 a.m. Eastern time deadline set by the UAW. At last check, GM was clinging to a 0.5% gain on the session.
The strike, entailing about 73,000 UAW members, affects all GM plants nationwide. According to UAW leaders, pickets had already been assigned as of last night, a move designed to effectively shut down production. Despite a report by The Wall Street Journal that a deal was on track, the UAW issued a statement accusing GM of failure to address job security and other mandatory issues of bargaining.