UAW Gets 96% Vote Approval For Strike, Sets GM In Its Crosshairs
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The United Auto Workers union has overwhelmingly voted to authorize a strike throughout its ongoing contract negotiations with the Big Three.
The strike received a 96.4% approval at General Motors UAW locals, while Fiat Chrysler workers voted 96% in favor and Ford workers 95.98%.
Additionally, the UAW announced that it would first target GM in its contract negotiations, using its deal with the largest American automaker as leverage when it heads to the bargaining table with Ford and FCA.
The UAW has expressed frustration with GM in recent months, with the automaker employing less UAW members than any other American automaker following its spate of layoffs this year.
“Mary Barra said from the outset of these talks that we will stand up as we tackle a changing industry,” said UAW president Gary Jones in a statement released this morning. “We are focused. We are prepared and we are all ready to stand up for our members, our communities and our manufacturing future.”
GM Spokesman David Barnas said the automaker looks forward to “having constructive discussions with the UAW on reaching an agreement that builds a strong future for our employees and our business.”
While the 150,000 UAW workers employed by GM, Ford and FCA voted to approve a strike, it does not mean a strike will happen. The vote simply determines if a worker strike is a tactic that can be used throughout the contract talks by UAW negotiators.
“No one goes into collective bargaining taking a strike lightly,” Jones said. “But it is a key tool in the tool belt as our bargaining team sits across from the company. Ultimately, the company holds that destiny in their hands as they bargain.”
There is no shortage of outside drama affecting this round of contract negotiations. An ongoing corruption investigation into the UAW led the FBI to raid Jones’ house in Michigan last week, prompting outcry from the union, which claimed the raid was not necessary as Jones has been co-operating with the investigation. GM has its own in-house issues, as well, with the automaker looking to restructure and “right-size” its business in anticipation of a coming automotive industry downturn.
Experts believe the UAW targeted GM as the first company to enter contract negotiations with as it is most likely to receive public support due to the automaker’s recent high-profile factory closures. The automaker is also in the best financial standing of the Big Three.
The UAW’s contract with the Big Three expires on September 14 ,2019.
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The Automotive News article sums up why GM is where it is with labor: “GM has the highest labor cost, at $63 per worker, and the highest gap between with the transplant automakers among the Detroit 3”. The UAW has GM nearly where it was before the bankruptcy. Other companies can provide greater value to customers and earn more profits to reinvest but GM has this millstone around its neck. For GM to survive its employees (don’t use Marxist terms like “worker”) need to decertify the UAW.
Auto production in the US isn’t even in the top 5 globally and that includes the transplants. GM should demand parity with the transplants and decertification in exchange for any assignments to the existing underutilized plants. Otherwise they’ll keep moving jobs out until the UAW is dead… I am no fan of GM Sr Mgt at all but this is about keeping mfg in the US. If you say I’m anti-employee you’re an idiot because GM is reducing employment as a result of the union so YOU are anti-employee if you support the UAW… it’s common sense in a globally competitive environment
So the strike hasn’t actually occurred yet, right? Hopefully all sides can come to an agreement before the union has to strike. I’m not educated enough on the issues to really have an opinion one way or the other. It does seem like the industry is cyclical, and it does seem like we are in a bit of a slowdown in regards to compact daily driver/commuter segments.
Good luck to all parties involved, especially the families of the skilled workers. Personally, I just hope if the UAW does strike it is over in 3-5 years and the Orion Township, or another great american manufacturing location can build me a Sonic SS.
As always the UAW goes after GM first, where are Ford and FCA? hiding, behind GM. One could think GM is getting tired of this and is part of the reason they have cut so many jobs in the U.S.
GM was not first four years ago. I remember working w/o a contract for a couple months.
I listened to my union leaders and have savings for a few months without work. Hopefully, others have done the same. I feel bad for the temps and we need to stay together and fight for all.
Meanwhile, production at VW, Toyota, MB, Honda, BMW, and Nissan plants in the US are rolling right along.
The workers in these plants aren’t paid as much as those at UAW plants, but they aren’t working on a dangerous assembly line right out of the 1920’s either. They also don’t seem to have much interest in wanting to become members of the UAW, even with the added benefits, so it stand to reason that the workers at those non-unionized plants are happy in their work.
If there is a counter-argument about ‘the middle class’, then I’d like to remind others that the middle-class existed long before the UAW and the invention of the automobile; it’s not correlated or even true that the UAW invented the middle-class.
GM doesn’t care , they will just shut down all US operations and move to China.
Ask your union brothers why americans are not buying more of union built automobiles??????
The selection of GM was a surprise. Perhaps the UAW thought they could pressure GM more by having a tight deadline. If the UAW does not walk away with new product commitments for the “unallocated” Lordstown and DHAM, they will look very foolish and have a high likelihood the contract will be voted down by the membership.