Daily Business Update: October 10, 2023.

Mack Trucks factory workers went on strike

Union employees at the Mack Trucks factory went on strike Monday after rejecting a five-year contract that the United Auto Workers awarded to the company. The strike, involving 4,000 union members, comes as the UAW continues an unprecedented parallel strike against Detroit's three major auto companies, Ford, General Motors and Stellantis (a Chrysler representative). Union president, Sean Fain, told Mack's parent company, Volvo Trucks, that 73% of the workers voted against the deal. The proposal included a 19% wage increase over the five years of the contract, including 10% after ratification and a ratification bonus of $3500. In addition, weekly employee contributions to''s health insurance would have remained unchanged. "I'm encouraged to see UAW members at Mack Trucks not giving up and demanding better conditions," Fein said.

Source: the Associated Press.

Pharmacists at Walgreens pharmacy chain went on strike

Hundreds of pharmacists and pharmacy technicians at the Walgreens chain of pharmacies went on strike Monday. Like pharmacists at the CVS chain who held a similar strike in late September, Walgreens employees are demanding better working conditions and staffing, as well as more resources to ensure job security. In addition, Walgreens pharmacy employees fill prescriptions, perform rapid flu and Covid-19 testing, administer immunizations and work with insurance companies on approvals and payments. The strike was''s scheduled through Wednesday. The company tried to downplay its impact. Walgreens spokesman Marty Maloney said, "A small number of our pharmacies are experiencing some difficulties and we apologize for any inconvenience this may cause. "

Source: USA Today.

Green Mountain Power is proposing to install battery backups.

Vermont-based Green Mountain Power has proposed installing backup batteries in most of its customers' homes as part of an effort to strengthen the energy grid during severe weather. The company also said it wants to replace more overhead electrical wires and strengthen above-ground cables, according to a statement submitted Monday to the state's regulatory agency.

Source: The New York Times.

Chinese construction developer Country Garden can't meet loan repayments

Chinese construction developer Country Garden warned Tuesday that it will be unable to meet a $60 million loan repayment deadline, the latest sign of looming greater frustration in China's real estate crisis. Country Garden warned in a document sent to the Hong Kong Stock Exchange that sales are suffering "noticeable pressure" and the company "expects that it will not be able to meet all of its obligations'''on overseas payments when due or during appropriate deferral periods'." Chinese authorities have previously praised Country Garden as a model construction developer because it avoided defaults that have plagued China Evergrande, the world's most indebted developer. China Evergrande defaulted in 2021 after Beijing restricted loans to developers.

Source: Associated Press.

The surprise Hamas attack affected oil prices and defense stocks.

Oil prices and defense stocks rose Monday after a surprise Hamas attack in southern Israel. Fears that the fighting will spread beyond Israel pushed international Brent crude futures up 4.2%. West Texas' U.S. futures'Intermediate climbed 4.3% to $86.38 a barrel. Shares of defense contractors such as Lockheed Martin and Northrop Grumman rose 8.9% and 11%, respectively, on their best days since March 2020, The Wall Street Journal reported. Major U.S. stock indexes initially traded down Monday but recovered as Israeli forces seized control of several towns controlled by Palestinian militants. The Dow Jones Industrial Average and the S&P 500 closed up 0.6 percent. The Nasdaq rose 0.4 percent.

Source: The Wall Street Journal, CNBC.