The daily business briefing: October 10, 2023
1. Mack Trucks workers go on strike
Union workers at Mack Trucks walked off the job Monday after rejecting a five-year contract the United Auto Workers negotiated with the company. The strike, which involved 4,000 unionized workers, comes as the UAW continues an unprecedented simultaneous strike against all three big Detroit automakers: Ford, General Motors and Chrysler's Stellantis. Union President Shawn Fain told Mack parent company Volvo Trucks that 73% of the workers voted against the deal. The proposal included a 19% pay raise over the contract's five years, including 10% upon ratification and a $3,500 ratification bonus. Also, workers' weekly health care contributions would have remained unchanged. "I'm inspired to see UAW members at Mack Trucks holding out for a better deal," Fain said. The Associated Press
2. Walgreens pharmacists walk out demanding better pay, staffing
Several hundred Walgreens pharmacists and pharmacy technicians staged a walkout Monday. Like CVS pharmacists who held a similar strike in late September, the Walgreens employees are demanding better working conditions and staffing, along with more resources to ensure they can do their jobs safely. In addition to filling prescriptions, Walgreens pharmacy employees perform rapid flu and Covid-19 testing, administer vaccines and work with insurance companies on approvals and co-pays. The walkout was scheduled to last through Wednesday. The company downplayed the impact. Walgreens spokesperson Marty Maloney said "a small number of our pharmacies are experiencing disruptions, and we apologize for any inconvenience." USA Today
3. Vermont utility proposes home batteries to bolster grid
A Vermont utility, Green Mountain Power, proposed installing backup batteries at most of its customers' homes as part of an effort to make the grid more resilient in bad weather. The company also said it wants to bury more power lines and strengthen overhead cables, according to a Monday filing with state regulators. Green Mountain Power said its battery proposal would cost less than putting up new lines and building more power plants. "Call us the un-utility," Mari McClure, Green Mountain’s CEO, told The New York Times. "We're completely flipping the model, decentralizing it." The company's filing asked the Vermont Public Utility Commission to authorize it to spend an initial $280 million to strengthen its grid and buy batteries. The New York Times
4. Country Garden warn of missed debt payment as China property woes continue
Chinese property developer Country Garden warned Tuesday it couldn't meet a deadline to repay a $60 million loan, the latest indication of more pain looming in China's real estate crisis. Country Garden warned in a filing to the Hong Kong Stock Exchange that sales faced "remarkable pressure," and the company "expects that it will not be able to meet all of its offshore payment obligations when due or within the relevant grace periods." Chinese authorities once praised Country Garden as a model property developer, as it avoided defaults that plagued China Evergrande, the world's most debt-laden property firm. China Evergrande defaulted in 2021 after Beijing restricted borrowing by developers. The Associated Press
5. Oil prices, defense stocks jump
Oil prices and defense stocks rose Monday following Hamas' surprise attack in southern Israel. Concerns that the fighting would spread beyond Israel sent international benchmark Brent crude futures up 4.2%. U.S. benchmark West Texas Intermediate jumped 4.3% to $86.38 per barrel. Shares of defense contractors Lockheed Martin and Northrop Grumman shot up by 8.9% and 11%, respectively, in their best days since March 2020, according to The Wall Street Journal. The major U.S. stock indexes initially traded lower Monday but rebounded as Israeli forces regained control of several towns from Palestinian militants. The Dow Jones Industrial Average and the S&P 500 closed up 0.6%. The Nasdaq gained 0.4%. Futures for the three main U.S. indexes were up slightly early Tuesday. The Wall Street Journal, CNBC
