UAW Strike Against GM Looking Increasingly Likely As Deadline Looms
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The deadline for General Motors to reach a deal with the United Auto Workers union is approaching fast and with negotiations still ongoing, experts believe a strike is more likely than not, according to The Detroit News.
A strike was always a strong possibility amid the GM-UAW contract negotiations, with GM determined to reduce how much it spends on hourly wages and healthcare benefits and the UAW eager to grab a share of the significant profits its employer has made in recent years.
GM currently has the highest hourly labor costs of the Detroit Big Three and also pays unionized employees $13 more on average than a non-unionized production worker in the US. Ford pay its employees $11 more per hour than the non-unionized average, while Fiat Chrysler pays $5 more.
The UAW previously voted overwhelmingly in favor of a strike, with 96.4% of UAW GM workers voting ‘yes’ on the strike approval. FCA worekrs voted 96% in favor of a strike, while Ford workers were 95.98% in favor.
UAW negotiatiors and GM representatives have until midnight on Saturday to ratify a tentative deal, otherwise workers will likely walk off the job. The union can also call for an extension to the deadline instead of striking.
Clouding the negotiations is the FBI and IRS investigation into the UAW, which has so far resulted in nine people being charged – eight of which were accused of misusing funds allocated to the UAW-FCA training center. Another UAW member was also charged after taking kickbacks for awarding UAW apparell contracts to associates of his. Last week, the FBI raided the home of UAW president Gary Jones as part of the ongoing probe.
Once a deal is ratified with GM, the UAW will turn its attention to Ford and FCA to attempt to ink a deal with those two as well.
Stay tuned for more information on the UAW-GM contract negotiations as more news surfaces in the coming days and be sure to subscribe to GM Authority for around-the-clock GM news coverage.
Source: The Detroit News
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Last week Mary Barra visited with President Trump, which was followed with some news about a possible joint trip to Ohio in the near future. If there is any truth to this joint Ohio visit, it may have something to do with a joint commitment to save or create new jobs. This development might turn into an incentive for a new Union contract agreement.
The last thing we need is a strike it does no good to shut the company down, looks very bad to the public and our customers. Like airing dirty laundry to public in a relationship.
When will the UAW learn the days of striking are done. It hurst everyone. This isn’t the 1960’s any more. The world has changed. There is always someone to take your place. This is what ruined the auto industry in the US or at least a big part of it. 1970’s the dark ages
Wait, so these people are already making 13% more than a normal worker, and they think that is bad enough they should strike?
Have you looked at the cost of living in the states of the imports? I am thinking not. Also so this number is about GM which still holds the most tier one workers.
Barra makes 9000% more than the factory workers. What does she do that makes her worth $22,000,000 per year? GM’s sales and Customer Base are shrinking every day. Even the Mexicans and Koreans won’t buy GM products and they are made in those countries by the hundreds of thousands every year.
Hey GM Strikers, don’t be so damn greedy…why don’t you all set an example from the CEO down to the lowest paid rank & file and take it on the chin to lower your damn cost of labor and benefits to match most of all working class Americans. You might be able to lower your overpriced vehicles that no one can afford. I know …price point price point supply & demand and all that other marketing BS. Bottom line all vehicles in US are too damn expensive for the average Joe…so buying used shit and visit local auto parts stores.
Strike Ford first….they need to stop building F150 trucks for awhile.
Rob,
I guess that would be the only way GM could outsell Ford.?
The last thing we need is a strike it does no good to shut the company down, looks very bad to the public and our customers. Like airing dirty laundry to public in a relationship.
I think this time it will be more about jobs than money.
They will keep the cost of living but they will go more for securing promises to keep plants open.
GM has many in needed plants and they have used them as leverage to negotiate contracts at plants. Both sides will want to secure the direction they want. UAW will want job security and GM will want the ability to move or consolidate jobs to the plants where cost are more favorable.
Neither one can afford a long strike so while there is some tough talk they will work something out.
Talks will be tougher at Ford and FCA where they are behind on cost cutting.
If you can’t get a fair deal for everyone even retirees. Then a strike maybe the only way…
If they deal cannot be reached that will help everyone even retirees than a strike may be the only solution.
Exhibit A Downtown Detroit. nuff said.
Very short sighted comment. Sky is always falling. How about we wait till it falls and renegotiate.
I remember back in the mid ’80’s I sold vehicles at a Nissan dealership in Worthington on the north side of Columbus. We would get employees from a recently built, at the time, Honda plant in Marysville. Since Honda didn’t build a pickup truck some would come to buy one from us. A very large number of the employees at the plant were laid off UAW workers that had moved there from Michigan. I don’t think a single one I asked said they would vote yes if the UAW tried to organize it.
My prediction: an agreement late Saturday. GM will agree to new products for DHAM; a financial commitment for Lordstown and Workhorse (much like the investment Rivian got) and guarantees that GM workers will be hired there; movement of product from Mexico and abroad to underutilized plants, and new “whitespace” product such as an Acadia XL and Buick Envision replacement for underutilized plants. The UAW will agree to more temporary workers provided there is a clear path for full time.
That’s the most sensible way this could turn out. Well said.
I’m not saying that GM cares at all about their workers. They open and close plants like I change underwear. I have read here that if the strike is for keeping plants open then ok but if it’s just for money ? then I feel that is unacceptable. Do Honda or Toyota or BMW plants in the us ever strike? I never hear of any? They are not UAW. We know the reputation of the UAW.
The average plant in the US is over 30 years old. You only change your underwear every 30 yrs?
“…They open and close plants like I change underwear…”
Arlington, Texas Plant opened in 1954.
Respectfully, I think you may need to use a different analogy. 😉
If they can pay Mary the kind of money she makes then they can give some things back that were given up by all hourly in the bkruptcy thst wasnt their fault. Not to mention the 1000’s and 1000’s that hourly workers lost in their investments they had in GM. They never report the true earnings of an hourly worker either.
Regarding the true earnings part… Maybe UAW employees don’t understand what all goes into true earnings? Like the GM-UAW employee I took a math class with in Ann Arbor who didn’t know GM owned Cadillac….
And you Yanks wonder why manufacturing continues to move to China and Mexico…. despite what the orange carrot says. Manufacturing is at a 50 year low in the US.
Carry,
Despite the down votes, what you say is a fact. It was reported on CNBC last month. Some people don’t seem to like to face the truth.
I didn’t understand the comment about looking at downtown Detroit. I believe he meant that as a dig on the city due to its turbulent past but his ignorance shined through with that comment. Detroit is booming. Don’t believe the media. M.D.G.A.
I say the uaw need to strike. That is the only way they can get some of the things they lost when gm went bankrupt. They gave up a lot. Now at gm is making double digits in the billions they can afford to hire all the temps and give back a lot of what the workers gave up to help the company in they time of need. They dont seem to want to give anything back to their employee. They want to take more from them so can get richer. Gm CEO is not worth what she gets paid. No CEO is worth 22 million or more a year. GM and the other auto manufacturers need to get they heads out of their …….. people say strikes don’t work. Well they do. At is how u get things back or the employee’s far share. If gm and the other auto companies would take care of they employees their employees would take care of them. Strikes dont air dirty laundry. Its help workers to get their fair share from their employers. And with all the is happening in the iuaw they better get them a good contract or they will be a lot more problems for them.
With all the benefits, GM has the highest cost of any US auto manufacturer at over $60/hour. That’s absolutely ridiculous for unskilled and uneducated labour. The exact same job in Mexico pays $2.5 to 5$ per hour tops and you don’t have to deal with all the ridiculous constraints of the US union. US employees are greedy but they are so easily replaced with technology and outsourcing. There will never be another auto plant built in the US. It’s easy to see why.
Assembly working jobs are unskilled job better reserved for 3rd world countries. It’s time to get over it and move on. Wrenchmonkees should never have the right to hold a company hostage. The faster they can be eliminated, the better. Shareholders, executives and leaders need to focus on making money and growing the company. This is why Apple makes absolutely nothing and outsources 100% of their products to China. They’re a trillion dollar company while GM is a measly 55B.
I agree with 90% of what your saying but they are no longer wrench ? monkeys ? skill is needed to assemble today’s autos because it doesn’t take much man power to build a car and BMW KIA Mercedes have built auto plants in the US in the last 10 years. GM is a dinosaur however
With the tariff threats and now the tariffs imposed by China on US cars, the Germans will not build another plant in the US. All their SUVs exported to China are now subjected to tariffs which they have to eat. The German brands are by far the largest auto exporters in the US and they have started to quietly move production elsewhere where they can. Politics are far too volatile in the US to make long-term decisions.
Unfortunately, corporate cost cuts are insurance and retirement for ground level workers. Until corporate America realizes where the work is done, this will continue.