uaw.JPGThe UAW negotiations with General Motors are stalled care, and as if that was not a large enough hurdle, it is intertwined with job security discussions. The UAW contract with the big three U.S. auto makers expired last Friday. Union employees are currently working under an extension agreement while in discussions with General Motors.

While a strike is not yet scheduled, the term has been used in posturing more than once in the past week. For their part, GM has postured with the prospect of having to downsize substantially, eliminating many union jobs. I expressed my opinion last week that the new contract would need to see some concessions on the part of the UAW, but that is easier said than done. In my opinion, the two sides need to realize that changes need to happen if the U.S. big three are to remain competitive in the marketplace.

My expected bounce on the Fed announcement was overshadowed by the continued union negotiations, but the impact on the equities was not dramatic in either direction. At this point the investors in this sector will be watching one issue. The UAW contract negotiations. Many now feel that the two sides are still several days away from an agreement.

Position - Long Ford, No position GM