廣告

Labor strikes 'just getting warmed up' -portfolio manager

STORY: The United Auto Workers expanded its strikes against Detroit automakers General Motors and Chrysler parent Stellantis, but kept its Ford walkout limited to a single plant due to progress made in talks, the union said on Friday.

Fitzpatrick noted that work stoppages will hit companies' profit margins.

"Keep in mind, this is new. So for a mid-level employee with 15-20 years experience, they've been told to get in line for 20 years. Now, all of a sudden they got a little bit of bargaining power and you can bet they're going to use that. They're going to flex their muscles and that is going to be a weight on corporate profit margins."

Fitzpatrick suggests that investors focus on companies that have a "more resilient business model, clean balance sheets, not a lot of debt."