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Old 25th September 2007, 12:29   #1
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Default GM Workers go on strike.

This just in:

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Workers at General Motors plants across the country walked off the job Monday, marking the first time since 1970 that a contract breakdown has led to a nationwide strike at the world's largest automaker.

After the United Auto Workers extended marathon negotiations with GM past the earlier Sept. 14 deadline, the union set a firm deadline late Sunday for Monday at 11 a.m. EDT. When the time came and no deal had been reached, the UAW declared a strike and workers left their posts, crippling the automaker's production lines in North America.

GM gave back its early gains after the strike began, but investors were able to take heart that the company was not flinching from its mission to reduce its bloated cost structure in a way that will make it more competitive with lower-cost, foreign-based competitors, like Toyota
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"We were disappointed to find out that this was going to be a one-way negotiation," said UAW president Ron Gettelfinger at a news conference after the strike began. "It was going to be GM's way at the expense of the workers. The company walked right up to the deadline like they really didn't care."

He said the parties were headed back to the bargaining table on Monday afternoon, but "with the frame of mind we're in right now, we expect the company would move rather expeditiously on the open issues that are in front of us."

A spokesman for Ford refused to comment on labor negotiations, while Mike Aberlich, a spokesman at Chrysler, said there were no work stoppages at his company. The UAW represents roughly 73,000 U.S. workers at GM facilities, and the walk-out was taking place at all 80 of the company's domestic auto plants.
Source: GM Workers Play Hardball - News & Analysis - Business & Insurance Update - F - GM

Could this be the beginning of the end for GM & also spell trouble for Ford & Chrysler? They already have enough trouble of their own with poor sales & increasing Pension & Health Care benefits and this is not going to help them one bit.

However, there is also a view with the experts that this might help the automakers as they already have a lot of stock standing in their lots & this could help them get rid of the excess inventory.

Let's see how this one plays out.
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Old 25th September 2007, 12:47   #2
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You're right. This situation is an all or nothing. It'll be interesting to see which party ends up with the nothing after this.
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Old 25th September 2007, 15:07   #3
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Considering all the nightmares that GM is going through, the UAW is on a strike? Talk about cutting the branch that you sit on. If you want to stick with a company in troubled times, get ready for some real compromises (including the management). On the other hand, I think the UAW knows that GM is going down and wants to milk the dying cow for all its work.

GM needs some serious management that can take equally serious decisions (ala Carlos Ghosn). File for bankruptcy, eliminate the healthcare costs and work toward competitiveness. Simply make better cars. I read / heard someone once say "GM is a healthcare company that also sells cars".
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Old 25th September 2007, 15:52   #4
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Well that's not wrong GTO if you see that the current costs for Heathcare/Retirement for GM is in the region of $ 51 billion!

How they are trying to offset that has become a bone of contention with the union who want their share of the pie. If they do manage to offset this cost to a seperate entity then their credit ratings wou;d improve & they would be able to get cheaper money, more easily.
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Old 25th September 2007, 19:33   #5
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This is what you call fat-brained. I don't understand if they don't settle for lesser they're going to loose their jobs (the UAW that is) because the company they're negotiating with is in a bad shape and thats the reason for the negotiations in the first place. Common sense.
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Old 26th September 2007, 12:10   #6
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Quote:
Originally Posted by iraghava View Post
Well that's not wrong GTO if you see that the current costs for Heathcare/Retirement for GM is in the region of $ 51 billion!
51 big B'S!! Holy crap......where did you get that number from? Is that accumulated or a constant?
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Old 26th September 2007, 18:49   #7
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Strike has ended:

GM/UAW Strike Ended
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Old 26th September 2007, 20:13   #8
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Originally Posted by GTO View Post
File for bankruptcy, eliminate the healthcare costs and work toward competitiveness. Simply make better cars.
How do you eliminate healthcare costs?
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Old 26th September 2007, 23:05   #9
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Originally Posted by vid6639 View Post
Strike has ended:

GM/UAW Strike Ended

Very sketchy details there. Anymore details you can get from your contacts in UAW?
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Old 27th September 2007, 23:26   #10
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Originally Posted by carboy View Post
How do you eliminate healthcare costs?
By not offering them in the first place. Thats what the problem is they've pampered their employees and the retirees so much that no wants a de-motion!
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