140,000 autoworkers at Ford, GM, and Stellantis plants threaten to go on strike

Caroline Woods brings you the biggest news of the morning, including fresh CPI data and a looming United Auto Workers strike.

Transcript

00:00 I'm Caroline Woods filling in for JD Durkin, reporting from the New York Stock Exchange.

00:04 Here's what we're watching on the street today.

00:07 Investors are reacting to a hotter-than-expected inflation report.

00:11 Consumer prices rose 3.7 percent on an annual basis, compared to estimates of 3.6 percent.

00:18 This report gives Wall Street a clearer picture of the state of the U.S. economy, while helping

00:22 the Federal Reserve determine its next course of action.

00:26 Investors are pricing in a 93 percent chance that the central bank holds interest rates

00:30 steady when it meets September 19th.

00:34 Investors are also looking ahead to a big report on retail sales due out Thursday, which

00:38 measures the state of consumer spending.

00:41 Meanwhile, the United Auto Workers Union could strike at certain plants if a deal isn't reached

00:46 by the Thursday night deadline.

00:48 The union, which covers over 140,000 workers, has indicated it intends to pose a walkout

00:54 at General Motors, Ford and Chrysler parent Stellantis if their desires aren't met.

01:00 The union is pushing for a double-digit pay increase, more time off, cost of living adjustments,

01:05 shorter work weeks and an end to the use of temporary workers.

01:10 While the two sides have negotiated, there has been little progress on discussions of

01:14 higher pay.

01:15 If a deal isn't reached, this coordinated strike would mark the first major labor stoppage

01:20 at all three Detroit automakers and one of the biggest U.S. industrial labor actions

01:25 in years.

01:26 But it isn't cheap.

01:28 Anderson Economic Group estimates that a 10-day strike at these three automakers could cost

01:32 carmakers, suppliers and workers over $5 billion while triggering a brief recession in Michigan,

01:40 Indiana and Ohio.

01:42 That'll do it for your daily briefing from the New York Stock Exchange.

01:45 I'm Caroline Woods with The Street.

01:47 Thanks for watching.

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