and the cnbc investing club, what could a uaw strike mean for the auto cohort as a hole? i'm digging into the latest situation. as i mentioned, synopsis announced a big leadership change i'm running through the announcement and those fabulous earnings so stay with cramer. don't miss a second of mad money follow @jimcramer on twitter have a question, tweet #mad tweets or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com nice footwork. man, you're lucky, thatwatching live sportsst. never used to be this easy. now you can stream all your games like it's nothing. yes! that's what i'm talking about. [ cheers ] running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. nice footwork. man, you

we believe uaw members deserve the same, if not more.u can imagine, the big three don't exactly agree to this when i talked to a few people they said, this is nuts. by the way, if this is a strike, this is what it would cost, an estimate of what it would cost the big three per week up to $70 million for general motors that comes to us from bank of america. as you take a look at shares keep in mind, the contract goes through periods like this where you'll see a big demand from the union and pushback from the auto makers we know they're not going to see a 40% raise. but compared to where i've seen them start in the past, this is way up there >> they get a 20% signing bonus, which is a one-time payment, and then the 20% increase is the recurring part of the picture. >> correct. >> it's really not a 40% increase -- >> it's not 40% overall, but that's how you get to the 40%. >> right got it phil, thank you. >> and just so you know, me his sark real quick, there are signing bonuses in the past, but they're not 20%. they're usually $10,000, $11

liz: last uaw strike only hit general motors. what was the impact on the stock?nd what kind of impact on any of these three names and their shares if this does come to pass? >> well, typically they pick a target and last time it was ford. ford hasn't had a strike in two or three decades. general motors made a mistake in the way they talked about closing one of their plants and in part that was a pay back to strike them for a couple of weeks. stocks do not do well. look at last five union negotiations in the august before the september contract date, the stocks have underperformed. they've underperformed again this august. no clear reason to buy the stocks prior to getting them settled. when they do settle, the stocks recover what they've lost typically. people get to put it in perspective on what it means for earnings and what it means for cost and unions negotiate and some don't and somebody gets her a week and settle general motors and maybe they get hit for a couple weeks with expectation. liz: x, the possibility of a strike. you like ford and general motors h

ford looks forward to working with the uaw on creative solutions. tonight, thousands of jobs, billions of dollars, and your new ride on an uncertain road jesse kirsch, nbc news, niles, illinois. >>> in 60 seconds, growing concerns about that new covid variant. we'll tell you what you need to know. >>> and the alarming video. a man under arrest after allegedly squirting chemicals under his neighbor's door making them sick. >>> we're back now with new concerns about covid. officials warning a new strain of the virus could pose a threat even if you're vaccinated or had covid. miguel almaguer joins us now miguel, what are experts saying about this >> reporter: well, lester, covid cases around the country are slightly on the rise, though not at a troubling rate, say officials, but authorities warn of the new variant ba.2.86. so far it's only been reported in a dozen cases worldwide. a handful of those infections, though, have been here in the u.s. ba.2.86 is a subvariant of omicron that appears to be more capable of causing infection even if you previous

you can't disagree with the uaw, to make living. you certainly could understand the environment, ups settled that 40%, it was unbelievable, legendary settlement of what they are going to get. that settlement is going to inflate inflation because wages are going up, packages going up. when they get air conditioning in trucks that will be another increase because of fuel costs. we see the same with the uaw, 40 to 46% wage increase. 32 hours a week. not sure how you build a car on friday if no one is in the factory but they are trying to survive whether it is an employee. neil: a lot of these deals go through. they got a generous payout. the delivery guys, they wish them well but around 40% when all is said and done. 40% for airline pilots, united likely to get the same so this is a trend that has a spillover effect. we wish these workers well. most people would feel that way, the price and the goods that they are delivering or selling to pay that. >> i have been saying it for a a while and two other gentlemen said we are in a private

ford looks forward to working with the uaw on creative solutions. tonight, thousands of jobs, billions of dollars, and your new ride on an uncertain road. jesse kirsch, nbc news, niles, illinois. >>> in 60 seconds growing concerns about that new covid variant. we'll tell you about it. >>> and the alarming video. a man under arrest after allegedly squirting chemicals under a neighbor's door making them sick. discov® tri-zone. in my ozempic® tri-zone, i lowered my a1c, cv risk, and lost some weight. in studies, the majority of people reached an a1c under 7 and maintained it. ozempic® lowers the risk of major cardiovascular events such as stroke, heart attack, or death in adults also with known heart disease. and you may lose weight. adults lost up to 14 pounds. ozempic® isn't for people with type 1 diabetes. don't share needles or pens, or reuse needles. don't take ozempic® if you or your family ever had medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2, or if allergic to it. stop ozempic® and get medical help right away i

>> the uaw always felt they were the benchmark.year. the difference is those businesses are primarily b to b type of businesses. and in the case of ups and fedex, it's almost an oligopoly. this is the only industry that hasn't consolidated that you'd expect an industry to. so the consumer has many, many choices. if they decide to win the battle but lose the war, that means less workers for them and their business model, the union business model is members because members pay dues and that allows the union to operate. wages don't really matter much if you don't have job. that's what he'll ve thao balance. >> that's mark fields joining us. "squawk box" right back. like nike, jordan, on, carhartt, hoka and more. the looks you want, the backpacks you need, all under one roof. when you can't make it to the store, dicks.com is always an option. and with our best price guarantee, if you find a lower price, we'll match it. with looks this good, it's never been easier to sport your style. >>> good morning. futures pointing at gains ahead of

we got a uaw strike potentially in september for 144,000 auto workers expired in the present of the uawd they were willing to take the workers out on strike like the teamsters. as a nonmember of a union, you can cross a picket line. if you are a member of the union and cross the picket line, you will be subject to discipline by the union through their internal process. we had health workers across the country whether it be caterpillar or ups or grocery stores who decided they wanted to cross the picket line and go to work and feed their families. yet they were punished with fines up to three or $4000 for the grocery workers, up to $40,000 in penalties and fines for manufacturing workers at caterpillar and other places. the foundation tries to make you understand you have to resign your union membership before you cross the picket line but otherwise you are subject to those funds. on our website, we have legal notices for workers where strikes are imminent where they can find out what their rights are and walk through the process to make sure they are not penalized. if they want to go on

. >>> plus, as the uaw threatens to go on strike, we'll break down how much pain this might cause forlready been suffering this summer t ne iba ia n moment we never just see the numbers, we see the people. my dad started trek in a red barn in waterloo, wisconsin. and now it spans the globe. you wanna take what was given to you and you wanna build it. and you wanna pass it along. if i can do that, i would have done well. that's why we're here... to help make it happen. the citi custom cash℠ card automatically adjusts to your spending. hi. ♪♪ you don't have to keep tabs on rotating categories. this is the only rotating i care about. it does the work for you. earn cash back that automatically adjusts to your top eligible spend category, with the citi custom cash℠ card. >>> welcome back nvidia shares rocketed to new highs before heading down. the options volume for nvidia exploded today, traders betting on more gains ahead. mike khouw joins us with the action >> yeah, traded all 2 1/2 times its average daily options volume, that made it the busiest single stock that traded today so, we di

the uaw is looking for a 46% raise and a 32 hour workweek. we look at the unprecedented possibility of a big three strike. from new york i am alix steel. guy johnson is off. he is currently sitting on a tarmac. we hope your plane has finally taken off. welcome to bloomberg markets. it will be hard to take a price signal over the next five days. volume is light. it is the last week in august. the take away is tricky. we did see action in europe. there is still a lot of data trickling out on both sides of the atlantic. central bankers made it clear at jackson hole they were following the data. >> we are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident inflation is moving sustainably down towards our objective. >> we need to see inflation moving down. we are seeing signs of that but i would not keep rates where they are and then decide later what to do. >> my view is that under tightening would be a worse mistake than over tightening because we can course correct that. >> if y

is a walter ruth-like uaw. like the old days. we are in -- of course, unions are much smaller than they used to be, but we are in a moment where unions are trying to be asen ascendant, and that's bad for profits. >> also bad for the inflation fight. we saw what happened with u.p.s. >> was that a giveaway contract? >> i don't know about that but it was inflationary. mary barra was on this network yesterday. she talked about where things stand with these contract negotiations i think we have the sound. >> about negotiations. we're right in the middle of it. and we are working very hard we're at the bargaining table, and we want to make sure that we have reached an agreement that is going to be good for the gmt members, good for the company, good for our shareholders. >> why are you so worried about this >> when you go back to the conference calls of the last quarters, mary barra, i thought, glossed over the issues. jim farley of ford is far more concerned. both these companies have the wherewithal, a lot of money

they really want to see, the uaw, then, wants to see the higher profit that the auto makers have beening to filter to the workers. that will be quite significant also interesting to note that anderson economic group says a ten-day stoppage could cost $5 billion u.s. that's not something they'll want to see or hear. >> $500 billion. that is an astronomical amount thank you. >>> still to come on "early today. miley cyrus will be taking, she'll be taking a wrecking ball to the charts with this drop >>> and the deal to help you cash in on the summer of the silver screen. keep it here he silver screen. keep it here rts with quality ingredients. and when great taste meets low prices. that's totally target. febreze! hate it when a car freshener hits you with an overwhelming blast of perfume? febreze car vent clips work differently. febreze gives you consistent freshness that starts just right and stays just right... ...for 40 days. upgrade to febreze car. "look at this skin, baby. she is glowing. she is 1 of 1." with new olay hyaluronic body wash 95% of women had visibly-better skin. "my ski

how is the uaw going to get a 32-hour workweek?thing, how this has unfolded is interesting. weeks ago, the uaw president and vice president negotiated with each other, the three car companies, wait out their goals for bargaining. the 32-workweek, bringing back pension benefits was not there. he took a list of demands from membership, and that was included in there. something like a 32-hour workweek, to me, is like the guy that runs for student council -- kailey: aspirational. david: i think he is serious about pensions but i don't know that he will get things like that. pay raises, better pay for battery workers, all of those things are realistic. the car companies know they have to do something. tom: also getting the detroit tigers over .500 baseball. kailey: aspirations abound. this is not just about the actual wage number, whatever wage comes out of this, agreement to pensions, hourly workweek, it is also more fundamentally about the ev transition and what will happen to workers in that. can you walk us through that? david: the

the uaw says the ceos of the big three saw their pay raise 40% on average over the last four years.uaw members deserve the same if not more haven't seen much in shares of gm, ford and stelanti stchlt most believe we'll see a strike at one or three of the big automakers come september 15th ist not a guarantee. i have been covering this since the late '90s. i can tell you, i have never seen this type of rhetoric this early between the union and the automakers >> phil, it's so interesting to look at those demands. my question is, where is this going to end up? are those demands in the realm of what's reasonable do you think they're a negotiating tactic >> it's a first offer. a first offer is always going to be a very rich one they're not going to get 40% overall. now, is it possible that they're going to get some type of a big signing bonus? i don't know if it will be 20% and then a raise they will get raises in there. the last two contracts have 3% and 4% baked into the annual raises they're not going to get 40% overall. >> yeah, that's a nice hike over four years we'll see how the ne

that's because the uaw has the ability to limit, if not completely stop production in mexico becauseuilding vehicles like the ram 1,500 or the chevy equinox, the ford bronco. those components come from the u.s., and if the uaw were to strike, you can bet that they would make sure that they would probably hit one of those production facilities so that the ability to manufacture vehicles in mexico and then bring them back here to the united states would be severely limited. as you take a look at where the uaw stands with the big three in terms of their hourly labor versus foreign automakers in the u.s. versus tesla, this is at the heart of the negotiations. remember, the uaw is pressing for a 40% pay increase along with other guarantees such as plants not closing, cost of living inflation adjustments and a 32-hour workweek, a lot of things that they would like, not sure they're going to get -- how much they're going to get of any of those remains to be seen as you take a look at shares of the big three. they have about 56 days worth of inventory. that is according to cox automotive. th

. >> i want to ask you about the uaw. you referenced the fact that the united autoworkers overwhelmingly approved possible strikes at three major automakers. more than 145,000 uaw workers could be on the picket line next month if a deal isn't reached. i'm sure you heard president biden, he said he was not that concerned about a strike, but do you think that he should support a strike? and do you worry that any of this and all of this could undercut an economic rebound? >> well, dana, one of the i think very positive things that's happening in america today is that working class people are standing up and fighting back. we're just seeing the teamsters take on u.p.s. and win a really strong contract for their workers. we're seeing nurses all over this country stand up and fight back for decent wages and working conditions and for their patients. right now, what you have is the big three auto industry, they're making huge profits. while real wages for those workers have not kept up with inflation over the last 10 or 20 years

pressingly, at least for wall street standpoint, the negotiations that are taking place between the uawomakers where the union's making, quote, unquote, to use its own words, audacious wage and benefit demands and you have the likes of gm countering and saying this is going to threaten theirability to do what's right for the long-term benefit of the team. how are you navigating that? what is the role that you're playing in some of these negotiations >> we have seen that the u.p.s. and teamsters reached a tent tich agreement we often see that collective bargaining process is not always pretty as it's going through people say things during the process, but as we've seen in a couple of very high-profile, big examples, the collective bargaining process works so, the u.p.s. and teamsters, tentative agreement, affecting 340 how to working people. on the west coast, 29 ports, affecting 22 how to workers also reached a tentative agreement and for uaw, that conversation, they're still at the bargaining table and trying to resolve and a lot of these are tough issues. they're grappling with things

contract ending in september and the possibility of a lengthy and costly uaw strike. no immediate catalyst today, both of these took moving down when you look at the demands for the next contract, it's clear they are way far apart from where gm and ford and stelantis will be. it's going to be costly. they also want a 32-hour workweek, job guarantees the bottom like is, when you look at these three companies, they're facing the prospects of what could be a lengthy and costly strike come mid september, at least where the rhetoric is right now, mike. >> for sure. phil, thank you. >>> joe, we're also celebrating a softening up of used car prices you have borrowing rates up as well >> i think there's a lot of concerns on both gm and ford t gm has wanted to cut costs, ford is shedding head count, so these two companies have to fates a lot of conditions that management has to deal with, and that's the return of union worker leverage. u.p.s. in 15 days conceded to what the workers wanted. it's about better wages, better security, better benefits, and the car makers will have

i thought this was a big deal as far as quantifying -- the first time i saw this, the uaw demand, theding from the auto companies saying it could add $80 billion to u.s. carmaker labor costs according to people familiar with the matter that over four-year term of the contract negotiation, but if you're looking for wages to go down, i mean, i know they're in negotiations now, but a 46% wage increase is what they're after, including shorter workweeks and all sorts of concessions it's 150,000 people that will be affected by this >> it's not midfield it would be 20% to start and 5% for the remaining four years, but what made the rounds yesterday was the comment from u.p.s. that drivers with pay and benefits comped now 170k >> 170 so wage inflation is very much alive. we'll watch this because of the deadline of september 14th there's a lot of stuff happening. september 30th is the end of the fiscal year, people worried about a government shutdown, so we'll have to start watching d.c. again, not that that might have a huge economic impact, but it certainly could there have been estimates, 0

you have a new uaw leadership that was transparently or directly elected by the rank and file, and you. you also have a transition, a once in a lifetime transition that will be tricky for the industry you have the uaw who has made some -- let's just say, realistic demands, and the leader calls them audaciou and judicious. there's some interesting things in there, some wacky things in there, but they're starting the negotiations now the contract is up on september 14th and listen, at the end of the day, there's a lot of things the uaw is asking for, but i think the union will focus on getting wage increases, they'll focus on some kind of job cutters, and also some kind of transition to evs, particularly for organizing some of the joint venture battery plans that are here and in the u.s and i think that's what they're going to focus on, andrew. >> mark, how does this compare we keep talking about the hollywood strike, which has now gone on for quite some time with the writers, of course, and now the actors, could you imagine a picket line for a very long time, or no? >> well, listen, thi

the uaw is negotiating new four year labor agreements for about 146,000 us hourly workers at gm. ford and jeep maker stellantis stellantis. the existing contracts expire on september 14th. the pharmacy chain rite aid is reportedly preparing to declare chapter 11 bankruptcy. that's according to the wall street journal. the journal says the move would halt a number of lawsuits alleging rite aid oversupplied prescription painkillers during a national opioid addiction crisis. the company is currently dealing with more than $3 billion worth of debt and facing more than 1000 federal and state level lawsuits, as well as a civil lawsuit from the department of justice. bankruptcy would allow rite aid to stall these suits and potentially resolve them in a single forum. wells fargo customers are reporting issues with some account function lines, which could be related to a possible outage. the bank says it is working to resolve the issue, as some customers say they are unable to use their debit card or transfer funds. the company also says some customers have experienced issues with the fun

. >> right around the time as the uaw strike. >> 13 and 14 are going to be interesting. >> big days.ut arm is going to be a very important offering. >> i'm glad you brought it up. >> important for softbank as well. it's a significant owner, which will continue to own. >> i think it's worth $80 billion. >> and you think the company is worth $80 billion. >> this company is in cell phones. >> well -- >> they're everywhere. >> yeah. >> brilliant company. rene haas is running it. >> worked at nvidia for many years. >> how'd you know that? i was just going to mention that. he's good friends with jensen huang. >> yeah. >> next he's going to tell me which board members like solve it. is it kj? is he the backer? >> i don't think they have issues. >> look at the board. they're all in favor. they love him. >> yeah. by the way, we've now transitioned from jensen huang to david solomon. don't ask me why, i don't know. >> we haven't spent enough time talking about other companies. >> oh. >> i'll stay on nvidia. >> i'm happy to move on to other companies. i'd just like a little warning. i can follo

the uaw is going to strike in the middle of september. i don't know that that means the market is going to sell-off, but it does add to some of the near-term negative headlines, if you will, that will pop up. >> what's the significance of watching the loss of leadership, if you will, from mega cap tech. you can look at a lot of the names. apple is front and center. apple is the steepest decline. nvidia is on the list too. you got to have something to pick up the slack if you're going to lose leadership. >> the fang is off 10 or 12% from the high. the market is off about half that. clearly for the moment leadership is in question. i would add when you look beneath the headline, beyond the tech plus names, look at the things i've been talking about for a couple of months now. the consumer areas, the hotels, the cruise lines, the movie theaters, the casinos to varying degrees, the performance of those stocks has been exceptionally strong and i think it speaks to something that's going on in the economy where obviously the consumer spending o

electrifying the grid is something that has caused anxiety with the uaw workers. we are a week away from the first debate for presidential candidates in the republican party. how do you think this is going to play out on the debate stage? how do they get these unions on their side? annmarie: donald trump saw that window. he realizes the concern uaw workers have about electric vehicles and what they could leave behind when you see subsidies coming out from the federal government to help the ev industry. he bashed the biden administration and he is trying to provide for the uaw workers. the union, although they endorsed biden, they have yet to say who they would endorse for president. every potential candidate, every candidate, stage in milwaukee is going to it to talk about this. jonathan: thank you and welcome back. it is good to see you. thank you. this op-ed from the treasury secretary is very interesting. i searched for the word inflation and it comes up 10 times. every time is when she just refers to the name of the bill, the efficient reduction act. the -- th

the uaw is negotiating new four year labor agreements for about 146,000 us hourly workers at gm, ford and jeep maker stellantis. the existing contract cuts expire on september 14th. health experts are closely monitoring the latest covid variant. there are only about a dozen cases of the variant called ba 286. around the world. but experts say it's a highly mutated form of coronavirus and may evade immunity. according to the center for disease control. so far, this variant does not appear to make people sicker, and it's believed antiviral treatments could still work against it. today, president biden said he's asking congress for funding for an updated vaccine. i signed off this morning on a proposal to have to present to the congress a request for additional funding for a new vaccine that is necessary, that works, and tentatively, we not decided. finally yet. tentatively. it is recommended. it, too, will likely be recommended. everybody get it, no matter whether they got it beforehand. pfizer, moderna and novavax are all working on a vaccine update that covers the omicron variant. exb

the president of the uaw auto workers took to facebook recently to give an update on the latest roundnegotiations, and in that update he held the stellantis proposal for a labor agreement up in the air, and he threw it in the trash. while doing that, he said "he's going to file it in its proper place". he added "stellantis is rich rendition of anthonyuated by the value of the member asks it's our labor that drives the company's success and the big three executives and shareholders are rich, uaw members, the workers, got left behind. our message to the big three is simple and very blunt, record profits equal record contracts". if the union has demands for increased wages met, there's some in the auto industry telling us that could translate into increased price for new cars to the tune of thousands of dollars. watch here. >> they're looking to cut the workweek back to 32 hours. that's a production issue. if they cut production any further, this car industry is in trouble because there's no production today. we're still trying to recover from the chip crisis. reporter: buying a new car

another rate hike or two on their way and that had influence on the markets also the potential of a uaw strike and there's some negative noose coming out and if you can show me the big tech board and it was up more than the dow and now down more than the dough and all in the red from apple down to alphabet and meta and we have down numbers all over the board on big tech and the two year, if we can check the two year treasury and that was down earlier in the morning. it turned around after the powell's speech and it is now up, we've got a two year treasury at a yield over 5%. 5.1% right now and up 7.9 basis points. that is a very, very high count on the yield on the treasuries. now let's get back to donald trump if we can. listen to what he said after surrendering at fulton county jail last night, watch. >> what has taken place here is a travesty of justice. we did nothing wrong, i did nothing wrong. they're trying to interfere with an election and there's never been anything like it in our country before this. is their way of campaigning. this is one instance but you have three other in

president, are you concerned about a potential uaw strike, sir? mr.: obviously i am concerned. i think the jobs that are being displaced and be replaced with new jobs and they should go to the uaw members, and the salary should be commensurate. >> have you seen the mugshot yet? mr. biden: i did see it on television. >> what did you think? mr. biden: handsome guy. >> what brought down the airplane of prigozhin? mr. biden: i'm not at liberty to speak to that but you and i talked about it as you know. i surprised by what happened. i don't have anything to say about that. >> can you say anything about [inaudible] ? mr. biden: i signed up this morning on a proposal to present to the congress a request for additional funding for new vaccines that are necessary and work. tentatively, it is recommended that everybody get it matter whether they got it before. host: once again, we want to know what you think is the top story of the week and what did you think about the story? let's go back to the phone lines and talk about sandy from columbus ohio on the democr

phil lebeau on uaw. looking forward to you and josh at 6:00 p.m., any teases? >> going to be some game show props as we do. we're going to actually rank an analyst favorite to least favorite stocks. we're going to force him to make that call on fintech. >> it is the best way to end the week. >> or short the weekend, as i like to say. akg t feels that way. "tinstock" 6:00 p.m. eastern. let innovation refunds help with your erc tax refund so you can improve your business however you see fit. rosie used part of her refund to build an outdoor patio. clink! dr. marshall used part of his refund to give his practice a facelift. emily used part of her refund to buy... i run a wax museum. let innovation refunds help you get started on your erc tax refund. stop waiting. go to innovationrefunds.com you really got the brows. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term

also steve moore on the uaw workers authorizing a strike.anel. all coming up, top of the hour. ♪ after advil. feeling better? on top of the worlddddd!!! before advil. advil targets pain at the source of inflammation. when pain comes for you, come back fast with advil liqui-gels. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. at stores everywhere without a prescription. i may be known for my legendary football career, but truth is, i love a bunch of sports. the only trouble is knowing where to find them. that's why i got xfinity. so, i can easily find and watch whatever sport i'm into all in one place without missing a thing. even if it's football, australian football, or football football. in a word—it's fitz-cre

i think a uaw strike where that your asking for $80 billion more, that is going to be the next thing we hear about when it comes to inflation wow. that is worse than the teamster ups. >> which is why my question to you yesterday is do you really believe the administration will cut this and would frn i don't know what they do because the fellow who is running this, i mean, he's using rhetoric that i hadn't heard from anyone since the 60s. the 60s. david, he's using things from the old days when let's go shut major textile companies. j.p. stevens when i was part of the boycott, fantastic we put them out of business. >> negotiating position, isn't that what you should be doing? >> it's really ugly. we're going to say let's go, let's define our contributions. >> but the tenor is united, the people >> so then you know. the people will neff be defeated that was the california for a major change in the way that everything's run >> i did, yes. >> i'm just saying, you can have consumer price index and then you can have the uaw if you have teamsters and your writers and everyone gets a big rai

i promised you i would be. >> sandra: clearly the uaw has something to say about that.ers feel betrayed by trump, that gives biden an opening. a battle royale. >> the long time congresswoman from ohio, marcy captore, been in 40 years, she has been warning they are losing the hard hat vote, losing the working class vote for the reasons we were talking about before and another point, the unemployment rate is low, this is a good thing. wages over the last two years have still fallen way behind inflation despite the fact yearly inflation has come down, it's not even close. growth is slumping. i mean, look, if you go back 2022, the first full year of biden's presidency, this year 23, you have six quarters. two of them are negative, first half of last year was a recession. but together the six quarters, 18 months, the growth rate of the economy is 1.3% at an annual rate. that's all it is. >> sandra: how can you have wages going up and low unemployment? >> that's correct. it's an unsustainable position and i will say to you, even though wall street is talking about a soft land

keep in mind, mexico plans for gm, stellantis and affordable they are not under uaw representation.ct, as you take a look at the production, which is about 20% of north american volume overall for the big three, keep in mind that they receive key components in mexico from north of the border, from uaw shops. engines, transmissions, and, ultimately, if some of those plans are cut down because of a strike or if there is a strike that limits no production, well, then you would see production ultimately stop or be severely limited out of mexico. the bottom line is whether it is something like the ram 1500 pickup truck, chevy silverado, the ford bronco, these vehicles would not be flowing from mexico here to united states and ultimately most leave within a matter of five or six days, you would see mexico production grind to a halt. it depends on if there is a strike and where is the strike at. is it across the entire automaker or is it only at key plans ? can you look at shares of gm, ford, stellantis, they are looking for a 40% pay raise. nobody knows if they will ultimately get a porti

i don't think we're going to see close to 40%, which is what the uaw is asking for. big pay raises relative to past contracts, look at that in the context of the overall revenue that each of the automakers brings in on an annual basis. it's not a huge increase. it sounds like a lot, but relative to where they are with their revenue right now, they're not going to be massive. >> yeah. auto business continues to be fascinating, phil. we'll watch you with your help in the days to come. phil lebeau, thanks. speaking of industries where there has opinion some labor strife, another note on our radar today, some upbeat commentary on fedex. citi calls the stock one of its top picks in the transports, bullish on the company's pricing powers and tailwinds stemming from the u.p.s. contract negotiations and the closure of yellow. our frank collins is watching this. frank, i heard you talking about it with the guys on "squawk" today. really looking at sort of the fee increases and what's usual and what's not usual. >> fedex moving higher right now, carl, on the back of that note

negotiations i know you won't negotiation in public but when you hear the head of the uaw say we want raise, give people some perspective in terms of how untenable is that for general motors to say, okay, we can increase labor costs by 40%? >> well, phil, i will say about negotiations, we're right in the middle of it and we are working very hard. we're at the bargaining table and we want to make sure that we have -- reach an agreement that will be good for the gm team members, good for the company, good for our shareholders. but also recognize that for every job that general motors provides, it is about six other jobs that follow on when you look at the supply base, dealers and beyond so we recognize the significance responsibility that we have. and we're at the table and we want to do the right thing for all parties and recognize the fact that i really appreciate everything our manufacturing team members have done over the last several years when you think about all the work through covid to semiconductor shortages. and so i'm very proud of the manufacturing team and we're looking to

uaw, united autoworkers has been negotiating with ford, gm, the big three is what they're called, thehat's an average across the big three, the workers, and roughly 150,000 workers. they voted overwhelmingly if you think we need to strike, you get to make that call. so they're endorsing, they're putting faith in the leadership to call a strike if that is something that leadership thinks is necessary. they're calling for multiple things. they want better pay. they want close to a 50% pay increase. they want pensions, traditional pensions back, and they want to be able to strike if there are closures. they want to be able to strike over closures of plants. those are just some of the demands being made and the posture from the uaw is that the companies are making all of this money, the workers deserve a bigger share of that money. >> and to that end, right, you're talking about workers and companies that are asking for more pay, pensions, but for consumers, right, those of us who drive these cars, what exact could we see? >> reporter: yeah, so we're on a car lot right now. some used cars

the clock is ticking on a potential uaw strike.rs are poised to walk off the job if there is deal by september 14th. uaw demands a four year deal and a 40% pay raise. employers may have drawn a line in the sand. after the bell zip recruiter posted its financial results and management offered a stark warning in its share holder letter, employers willingness to pay for the job openings declined significantly from the peaks of 2021 and 2022. this tug-of-war over wages between employees and employers is more intense than ever. the implications for the economy, from consumption and gdp growth to a potential spike in inflation have everyone on wall street watching. back to you, charles. charles: madison, great, great stuff. we are torn. thank you very much. on that note, folks, let's bring in the man himself, founder and chairman of laugher associates, art laffer. i want to begin with the notion wage price spiral sparking inflation. some economists say it is a myth, doesn't really happen. your thoughts? >> well obviously when you have in

manufacturers at midnight on the 14th of september, contracts between detroit automakers and the uaw moment for the union and has hinted at the likelihood of a strike. joining us now with more is cnbc's seema mody. what more would a strike mean for the automotive industry and for our economy? >> well, jose, this strike would involve roughly 150,000 autoworkers costing the country over $5 billion. that's the latest estimate from the anderson economic group. now, another potential outcome is more american car manufacturers moving their operations outside the country. according to the head of the union's unit, the carmaker is discussing relocating some of its pickup truck production from detroit to mexico due to these ongoing labor discussions. and of course that's a trend that we've been seeing over the last two to three years because of the pandemic. >> seema mody, i thank you so very much, appreciate it. >>> up next, shock in one california community after a shop owner was apparently killed over flying a pride flag. >>> plus, climate change appears to be taking a major toll on the un

and yet now i'm listening to this fellow who runs the uaw and he is using fiery rhetoric that tells met his team wants to strike, okay november 14th. now we don't know. anything could happen. they want a lot of money from the auto companies but how impacted would you be if the auto companies got hit by a uaw strike >> anybody is going to be impacted but amongst many things in our business model that we've already talked about is when you isolate that down, that's the united states of america that's just the light vehicle business we're almost an $11 billion company right now, and we're spread across all the end markets, all the joggeographies. it's significantly less than 50%. >> the biggest polluter in the world, do you think it's possible we're going to have hydrogen trucks? and would you play a role in trying to make that the trucks weren't so dirty >> i am bullish. i am bullish on hydrogen trucks. i can see by your look that is maybe a little surprising. >> no, windy tells it could happen, and they're the biggest. >> who knows you have to keep your toe in the water on all the new g

it's about half of what it was in 2019, bfrpefore the uaw stri four years ago.he entire industry. as for the big three, they've known this strike possibility was looming, so, they have been ramping up production as much as possible, but the supply chain, the chip supply, was really limited over the last couple of years, so, they've been able to increase their inventory, tyler, but not to the degree that they have previous times. >> are they still selling above sticker? >> it depends on the model. there are many models that are still selling above. i know some of dealers who are saying, look, if i'm selling a pickup truck right now, a traditional internal combustion engine, i'm selling it above sticker in many cases. not all the time, but in many cases. it's not like it was two years, a year ago, but it is, you know, it's hard to get a deal out there. >> it was really a paradigm shift, if you were in the market at that time. we logs a car in a flood and had to go and there was nothing available. and you had to pay above the list price. phil lebeau, thank you. let

lisa: depending on how things go you will be a uaw worker. jonathan: i will be making hummer evs.ternal combustion engines? lisa: bespoke investment management came up with this point where they said it is not that there are strikes that are happening, it is that they are not happening that is the interesting thing. that these companies are paying up. i think american airlines something to the tune of $250 million of expenses tied annually to some of these increases. and they are swallowing them because the workers are more important than that extra cash. jonathan: i would say this too, in certain instances this is the revenge of the labor market. this is a decade of sitting there every year with your boss and being told inflation is a 2%, this is your payraise, inflation is at 1.5%, this is your payraise. it is 10 years of that concluding with this. hey, what happened to the last 10 years? every time you set me down and said ask, this is what is happening now. lisa: i would take that a step further. and then you add to the fact that corporate profits have outpaced labor's share d

the guy who runs uaw, i find him frightening. >> and teamsters u.p.s. didn't give you any solace? teamsters turned out to get a good deal. historically, very powerful union, rich union, but the uaw leader won -- there was a contested -- very contested vote between the company, the union that wants to work with the autos together to try to preserve some jobs and give the elder people a good pay. and then this man, sean, who is just talking aboutcapitalism and the nature of capitalism and how it's really hurt workers this is very walter reuther language it's -- it's a kind of language that when we had in this country, we'll take you down if you don't play ball, that's the language i'm hearing from uaw. and look, i mean, it's the kind of language we just say, you know what? we should have built all our evs in mexico. it's that bad. i don't think people are paying enough attention the man is -- i'm not saying he's irrational. i'm saying he was elected in order to make it so that there's a very short week, to find benefit back and then the notion that we're fat cats. the shareholders a

the, uaw and workers are demanding a wage hike, restoring pensions and a 32-hour workweek down from 40 hours. negotiations are under way, and the current contract expires september 14th. >>> when we come back, the race to put out an inferno after a massive refinery blast in louisiana triggered evacuations. ♪ things are looking up ♪ ♪ i've got symptom relief ♪ ♪ control of my crohn's means everything to me. ♪ ♪ ♪ control is everything to me. ♪ feel significant symptom relief with skyrizi, including less abdominal pain and fewer bowel movements at 4 weeks. skyrizi is the first and only il-23 inhibitor for crohn's that can deliver both clinical remission and endoscopic improvement. the majority of people on skyrizi achieved long lasting remission at 1 year. serious allergic reactions and an increased risk of infections or a lower ability to fight them may occur. tell your doctor if you have an infection or symptoms, had a vaccine or plan to. liver problems may occur in crohn's disease. ask your gastroenterologist how you can take control of your crohn's with skyrizi. ♪ ♪ control is everyt

the contract between 150,000 uaw measures and ford and stone lantus expire september 14th. for the first time, authorities have released an official count of those who remain unaccounted for in the wake of the wildfires. there are 388 names on the list. that is significantly lower than the estimated 1100 from earlier this week. cbs's ben tracy reports from the fire-scarred town of lahaina. >> every day i find out one more of my friends is missing, or one more of my friends' little child is missing. >> reporter: eddy garcia is worried that many of the unaccounted for might never be found in the ashes of lahaina. >> so i can't even imagine, for the people who lost their children, and just don't know where the people who are missing, when they are going to show up, or if they are not going to show up. >> reporter: the number of people missing has dropped dramatically as the fbi events each name on the list. >> we have a first and last name and some other identifier, and we are able to make contact with the personon who regisistered te reportrt. ththese are peoplple that we do

the big three automakers and companies with the uaw negotiated a new agreement and i'm asking them tok together to forge this agreement and together we can make this transition to a clean energy future fair and just. that means ensuring that all the jobs continue to be good jobs that can support a family. [applause] host: jack ewing, are the auto jobs good jobs and what is the status of the industry transitioning to electric vehicles? guest: i think the big risk for electric vehicles from an economic point of view is that you need fewer parts electric vehicles and you need different parts come you don't need mufflers anymore, you need batteries. that will mean some companies will either have to adjust, go out of business that will have an effect on communities. it's really a question of where there are going to be new jobs, and the electric vehicle industry, is not clear yet whether there will be as many jobs there are now in the auto industry. i think part of the bill, part of the aim of the inflation reduction act is to ensure that happens. i wouldn't say it's a done deal. host: he

probably 95% the results will be announced tomorrow all of this comes down to the uaw and if they canthe benefits or pay package depending on the big three automakers between $63 to $67 a hour you see the comparison to the foreign automakers and well is what is estimated by tesla line workers. uaw, if you look at the demands, it comes down to a 40% raise through 2027, including immediate 20% bump once the contract is approved cost of living adjustments, job guarantees and they want a 32-hour workweek no more 40-hour workweek they believe this is a quality of life issue for membership unlikely they will get all of thre these or a portion of these. they will get some increase in pay or whether or not the cost of living goes through the sahares of gm, ford and stellantis increasing inventory. we will see a stroike with one automaker or all three or transmission shop to choke the lines elsewhere. that remains to be seen. >> phil, i want to switch gears and take you to the boeing manufacturing issue that we have been talking about and reporting on early this morning. you have been spending