Here's why the UAW's record deals with GM, Ford and Stellantis aren't getting full support
The United Auto Workers (UAW) has secured record contracts for its members with Detroit automakers after contentious talks and labor strikes. However, not all union members are satisfied with the tentative agreements. While the agreements were recommended for ratification by UAW leaders and were expected to pass, support has been narrowing. Several major assembly plants, representing approximately 21% of General Motors' UAW-represented employees, have rejected the pact, along with one of Ford's largest plants. Reasons behind the disapproval vary, including concerns about unequal treatment of veteran and newer workers, retirement benefits, and language in the agreements. There is also lingering distrust in union leadership following past corruption scandals. Some workers believe that the tentative agreements do not go far enough in meeting their needs, citing expectations of higher pay increases, traditional pensions, retiree healthcare for all, and the elimination of "tiers" and a shorter workweek. The UAW reached separate tentative deals with each automaker, so a failure of one agreement does not impact the others.
House passes bill to avoid government shutdown, Senate to vote next
The House of Representatives has passed a bill that would prevent a government shutdown. The bill, known as a "laddered" continuing resolution (CR), will fund parts of the government until January 19, 2023, and others until February 2, 2023. It is now expected to pass in the Senate and then go to President Joe Biden for final approval. The bill received broad bipartisan support in the House, with 336 in favor and 95 opposed. However, it is notable that 93 Republicans broke with party leaders and voted against the bill. This vote may signal trouble for House Speaker Mike Johnson within his own party, as ultra-conservatives had previously criticized his predecessor for not taking a harder line on spending bills. Despite reservations, Democrats publicly backed the bill in order to avoid a government shutdown. Senate Majority Leader Chuck Schumer has indicated that he and Republican Minority Leader Mitch McConnell will move the bill swiftly through the Senate.
China's unfinished property projects are 20 times the size of Country Garden
According to a report from Nomura, the issue of delayed home deliveries in China could become a social issue that puts social stability at risk. The collapsing property sector and credit fallout among property developers have caused delays in construction and left homebuyers waiting for the delivery of their purchased new homes. The report highlights that last year, many homebuyers in China chose not to pay their mortgages due to these delays. The analysts suggest that if the issue of home delivery continues to persist, it could endanger social stability and ultimately require Beijing to provide significant policy support. The Nomura analysts believe that restoring confidence in the property sector and the overall economy hinges on resolving this issue. They estimate that even with a 20% volume growth in new home completions this year, developers will only manage to deliver 48% of the homes pre-sold between 2015 and 2020, leaving 52% still subject to delays.