UAW Hits GM with Nationwide Strike
The nationwide labor strike at GM’s factories
and warehouses, triggered and supported by United Auto Workers (UAW), is
extended into its 2-nd week, as the talks between the labor representative and
the car manufacturer face serious contradictions, ranging from labor conditions
for part-time workers to salaries for new employees. This walkout has already
become the UAW’s longest nationwide protest campaign at GM since 1970.
It should be reminded that the strike of GM
workers started on September 16. During the protest, more than three dozen
production facilities in 9 US states were closed, along with twenty-two distribution
warehouses. In the context of that campaign, approximately 50 thousand of
workers refused to perform their work obligations. UAW leaders called for a
strike amid stalemated negotiation on a new labor contract with the carmaker.
As a result, almost fifty thousand workers at GM plants and distribution
warehouses received an order to leave their workplaces or even not to show up
to work.
Tensions between the carmaker and the union
began in 2018, when the automaker decided to close several plants in the US
(including transmissions plants in Warren, Michigan and Baltimore). The UAW as
well as employees of affected plants railed against this contradictory decision.
The union also started pushing for significant improvements in working
conditions, while GM planned to reduce expenditures.
According to the union’s representative in
talks, the strike is a last resort measure, but it is needed because the
parties are too far from any compromise on many issues. It is said that UAW
understands possible negative implications of the strike, but the union won’t
withdraw its demands. UAW insists on working out a new and more just collective
agreement, which will ensure higher salaries and benefits as well as job
security.
Learn what GM workers are fighting for directly from the protesters
GM has already made several proposals to improve working conditions, but all of them were rejected by UAW. Financial experts assume that every day of protests comes at a high price for the carmaker (approximately $75 mln. per day). Current situation also has a negative impact on the GM share price (fall by 2.8%). The protests also became a serious blow to numerous GM suppliers, who had to stop production of spare parts and suffer financial losses because of suspension of production at GM plants. Currently, the talks are continuing and it is said that parties have managed to achieve significant progress.
