UAW, GM dealers are still seeking agreement when strike reaches two week mark

Conversations took place in the evening on Saturday, according to a person familiar with the negotiations, as the two sides seek an agreement on big questions about wages, profit sharing, job security and GM's use of temporary workers.

The strike has been the largest against any US business since 2007, when GM ( GM ) carmakers went off the job for three days. This is the longest GM shutdown since 1998, when a 67-day strike at two factories in Flint, Michigan, finally stopped production at 30 other GM factories across the United States.
Once a preliminary agreement is reached, union dealers need approval from GM's rank-and-file members before it can take effect. Rejection of a preliminary agreement is not unheard of, with workers at Fiat Chrysler ( FCAU ) rejecting an agreement reached four years ago, before approving another version .

it is not clear whether the union wants the workers back to work during the ratification process or wait for it to be ratified.

The strike began at 02.01[ads1] on Monday, September 16, and stopped work at 31 GM factories and 21 other facilities across nine states, mostly in the center of the country. It also led to layoffs at some of the 10,000 US suppliers supplying car parts and other goods and services to GM. It may have estimated as many as 200,000 extra workers at these companies, according to estimates.
Signs of progress in the talks emerged late last week, according to people familiar with the matter.
The union's main negotiator told members late Wednesday that all the talks had moved to the main negotiating table, away from the committees that met to work on specific issues, such as contract details pertaining to some facility. And on Thursday, GM agreed to restore health care coverage for those striking at the company's expense, which was seen as a further sign of progress.
  The GM strike was inevitable. How it will end is not so clear

The strike has been costly for both sides. Those on the fence lines had only received $ 250 a week in strikeouts, and started this past Monday on the eighth day of the walkout. It is well below the more than $ 30 an hour that most veteran workers earned.

This is equivalent to lost wages of about $ 18 million per day for striking GM employees, according to an estimate by the Anderson Economic Group, a Michigan research firm that focuses on the automotive industry. The strike has cost GM about $ 25 million a day in lost profits, according to Anderson.

GM had built up the inventory of cars it had available before the strike to limit lost sales. However, the credit rating agency Moody's had estimated that when the strike lasted more than one or two weeks, the chances of it having a significant impact on the economy increased. GM's credit rating is just one step above the status of rubbish bonds and any downgrade to the status of rubbish bonds will risk raising the cost of loans.

Source link

Back to top button