The United Auto Workers (UAW) union has gone on strike against General Motors, following failed contract negations between the union and GM over the weekend. The strike took effect Sunday night, and is now hitting GM stock value, which saw a 5-percent drop as of this writing.
GM stock value was down to $37.05 per share Monday afternoon, a loss of $1.81 per share from last week’s closing value $38.86. Monday’s loss follows a small gain of less than 1 percent seen last week, with GM stock value rising $0.08 from the previous week’s closing value of $38.78.
Indeed, pressure is mounting for GM to find a solution, and quickly. GM is also facing a halt on vehicle deliveries, as the Teamsters Union recently announced it will show solidarity with the UAW.
In the midst of the UAW strike and contract renegotiations between the union and GM, the UAW is also facing an ongoing corruption probe from the FBI, which has already seen ten individuals arrested thus far. Last month, the FBI raided to home of UAW President Gary Jones in connection to the investigation, as well as the home of former union president Dennis Williams.
In addition to talks with GM, the UAW is in the middle of contract negotiations with the other two automakers of the Big Three, Ford and FCA.
“Local Union leaders from across the nation met Sunday morning after the 2015 General Motors Collective bargaining agreement expired Saturday night and opted to strike at midnight on Sunday,” the UAW said in an official release. “The autoworkers are calling on the Big 3 automaker to recognize the contributions and sacrifices that the company’s UAW members have made to create a healthy, profitable, industry.”
It remains to be seen how long the strike will last, with roughly 50,000 union workers walking out on GM. This is the first such walkout since 2007.
Contract negotiations resumed Monday morning.
We’ll keep our eyes on this story as it develops, so make sure to subscribe to GM Authority for more UAW news and 24/7 GM news coverage.
Comments
Make them feel the pain.. by stretching this strike until next January as it’ll show the bean counters at General Motors that the UAW might be thieves who face indictment and prison, but they’re not stupid enough to accept a small $8Billion investment when there’s so much more potentially.
isn’t strike pay about $250/week? good luck to any family surviving on that.
To the UAW, it’s not about the families.
UAW leadership has to appear strong to their members so they can justify their lavish golf retreats and expensive liquor…..and their upcoming legal defense against federal bribery charges.
We shouldn’t have bailed out GM. We should have bought it.
The world recognizes that General Motors negotiating with the UAW is like a terminal patient negotiating with cancer.
The UAW is obsolete and corrupt.
UAW leadership is totally greedy and corrupt. GM is trying they are not, 2% wage increase still not enough after they’re already making $25-35/ hr for mostly unskilled labor. GM also gave fat profit sharing checks in Feb. of $10,750 to 46,500 hourly workers. that’s $500M from revenue handed to them on top of great salaries and bonuses, healthcare etc, still not enough. GREED! They’re all lucky to have such a great paying job, now only getting $250 a week on strike! Morons.