The GM strike is now in its third day following a United Auto Workers walkout that went into effect Sunday night. This is the first national UAW strike since 2007. Negotiations between the union and General Motors restarted earlier this week, with both sides seeking to hash out a new four-year contract after the previous contract expired last Saturday. While initial reports indicated no progress in the talks, it’s now looking like some small advances have been made thus far. So – what do both sides want from the new contract?
Let’s start with the UAW, which points to a litany of sticking points as roughly 50,000 of its members continue the GM strike.
One of the biggest issues is health care. Currently, it’s estimated that GM workers pay roughly 3 percent of health expenses, far below the 28 percent paid by the average U.S. worker, and thus, the UAW is seeking to retain those benefits.
Wages are also a major issue, with the UAW seeking increases over previous figures, as well as substantial wage progression for new hires.
Beyond these two headlining items, the UAW is also seeking a larger share of GM profits, a path to a permanent position for temporary workers, new allocation for recently idled production facilities, and greater job security as well.
Meanwhile, GM is seeking to balance the UAW’s demands with lower overall labor costs, preferably something more in line with the costs incurred at U.S. auto plants run by foreign automakers.
However, healthcare is one of the more-expensive items for GM, with reports that the automaker doles out upwards of $1 billion in healthcare-related payments every year.
This past Sunday, GM proposed a deal that included the addition of 5,400 new jobs over the next four years, with applications in battery cell production for electric vehicles and production of a new electric pickup truck. The deal also included $7 billion in investments, a ratification payment of $8,000, wage and lump sum increases over four years, and a better wage sharing formula, as well as retention of health care benefits, plus new coverage for things like autism therapy and chiropractic care.
However, the proposal failed to address temporary workers, new-hire wages, and did not provide specifics with regard to health care costs. Thus, the UAW rejected the proposal, leading to the GM strike this week.
However, with negotiations once again underway, some resolution is now looking possible.
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Comments
One thing that gets left out of health care is that GM has a much older work force than most of the newer non union plants the import brands have. When they started these new plants they hired moslty people under 30 years old to hold down health cost.
This alone save tons of money for these companies.
We (the US) lost a lot of auto production to Canada simply due to healthcare costs.
We lost a lot of production initially due to CAFE.
Many trucks and large cars went to plants in Canada and Mexico as they could be considered imports and with the way the rules were written did not hurt domestic CAFE.
Once that happened the plants were there and not take advantage of other loop holes.
Many fail to remember the fuel mileage deal established the factories long before nafta.
Interesting data point….I recently read that GM employs about 3X as many hourly workers in the USA as it does in Mexico. (Approx. 49,000 vs 16,000). And since 2009, GM’s invested more than $23B in the USA…and only $5B in Mexico.
GM needs to continue to move jobs out of the USA as it’s costs to build here are simply not competitive and the UAW has no interest in the health of the company. This company provides for its employees but in a global market the competition is not raising prices or costs so GM will always be at a disadvantage.
With the average American paying 28% of their healthcare costs and these people pay 3%… I mean seriously? And they want MORE? They’re out of their minds… they’re once again trying to kill the golden goose. Also the UAW is about power not the employees which we’ll soon see when “they” have to open their wallets to pay members costs.
I think the current GM Sr Leadership stinks but no other transplant has to put up with this crap from the UAW so unless they decertify the union I’d keep moving jobs out. These employees can reinvent themselves or go work at a transplant…
The justice department needs to throw the anti-trusthammer down on labor unions like this.
Bust the UAW.
Their members and their children will be better off without those leaches.
The same issue on retirement. GM has many retired and many older employees that cost more than the much younger force that has not retired from Hyundai etc.
These details get left out when GM critics chirp up.
Not everyone is playing on the same terms.
There will be much postering but we will get a settlement by next week.
Profit share (while they are employed at GM) is a good idea for the most senior employees as a method to retain only the best/brightest.
Literally none of the other demands are reasonable – especially the demand that the company cover an even higher share of a high end health care plan that they already do.
The costs of labor should be in line with American workers at Honda or Toyota.