Over the past few months, the United Auto Workers (UAW) union, representing nearly 150,000 employees at General Motors, Ford Motor Company, and Stellantis (the conglomerate that owns the Chrysler and Jeep brands), has worked on negotiating a new labor agreement that would increase salaries and benefits for its employees over the next several years. With the current contract set to expire today, the union may go on strike, which could ripple across the industry.

Some experts warn that the strike may disrupt supply chains and increase prices for new and used cars. The strike could also pressure auto insurers that have had to cope with higher car and replacement parts prices for several years. You'll want to monitor the negotiation and potential strike if you own investments in auto insurers like (NYSE: PGR) and Allstate (NYSE: ALL). Here's why and what you can do about it.

The UAW is a labor union formed in 1935 that primarily represents over 391,000 workers in the U.S. in auto, auto parts, healthcare, and higher education. In recent months, the union has negotiated with the three major U.S. auto manufacturers as its current four-year deal ends in mid-September. The negotiations come when labor union support is near a historical high point. According to a poll by Gallup, 71% of Americans approve of labor unions, the highest measure Gallup has recorded since 1965. 

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Source Fool.com