As the first company-wide GM strike to hit the automaker in 12 years enters its third day, the Associated Press reports that progress in contract negotiations between the United Auto Workers and General Motors is slow, but advances have been made, citing statements made by UAW spokesman Brian Rothenberg.
Roughly 50,000 UAW members are currently participating in the GM strike, halting production at the automaker’s facilities across the nation. The UAW and GM are still hammering together an agreement, but must address a variety of contentious issues, including health insurance costs, wages, pensions for temporary workers, and plant closures. The new agreement will be part of a new four-year contract between the UAW and GM.
As talks resumed earlier this week, early reports indicated no progress, as tense negotiations led to flared tempers and calls for breaks. Now, it looks like some forward momentum has been achieved.
This latest GM strike went into effect at midnight on Sunday after contract negotiations between the union and GM failed to find a resolution, following the expiration of a previous contract Saturday night.
Although it’s still uncertain when a resolution will be found, any progress at all is surely a positive sign for both sides of the table.
Indeed, both sides are certainly feeling the pressure. Some analysts predict the GM strike could cost the automaker upwards of $100 million per day. GM stock value has also seen high volatility throughout the week.
Meanwhile, General Motors has shifted UAW member health insurance costs to the union, placing yet another drain on the UAW’s strike fund. What’s more, employees at GM supplier companies have already been laid off, and are ineligible for the $250 weekly strike pay offered to GM employees. UAW members are also under investigation in a widening corruption probe by the FBI.
Source: Associated Press