Elizabeth Warren, deride the practice as “paper manipulation” that artificially inflates a company’s value. The UAW didn’t immediately comment on GM’s buyback announcement.īuybacks - in which a company repurchases outstanding shares in the open market to increase the value of existing shareholders’ stakes - are a controversial but widely used tool for companies to reward investors.Ĭritics, like US Sen. GM rank and file ratify labor deal, ending threat of a renewed strike automaker's full-size sport utility vehicles, in another expansion of the strike in Arlington, Texas, U.S. United Auto Workers (UAW) members strike at a General Motors assembly plant that builds the U.S. But the issue got scrapped during negotiations with management. Under the share repayment announced Wednesday, that would have come to about $20,300 total per union member. One of the union’s earlier demands was that every member would receive $2 for every $1 million the company spent on share repurchases and increased dividends. The UAW had strongly objected to GM’s payments to shareholders in the form of share repurchases and dividends. “Now that we have a ratified contract and a clear path forward that includes greater operating investment efficiency, we can resume returning excess capital to shareholders per our plan,” said CEO Mary Barra on an investor call Wednesday. The company reported strong earnings in its most recent quarter, and now expects full-year operating profit of $11.7 billion to $12.7 billion. Of course, in announcing shareholder rewards, GM signaled it could absorb the financial hit from the strike. Under the deal, workers secured a record 25% wage increase for 46,000 UAW members over the life of the contract. New contracts for GM’s unionized workers in the United States and Canada will cost the company an additional $9.3 billion through 2028. Paul Sancya/APĪ core frustration unites striking workers: Exorbitant CEO pay The UAW is conducting a strike against Ford, Stellantis and General Motors. United Auto Workers members march through downtown Detroit, Friday, Sept.

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