UAW Workers Walk Off Jobs

By Brendan Moore

09.24.2007

11:31 a.m.: UAW union workers have walked off the job at multiple locations and have started picketing outside in some of those locations after a union-imposed deadline to contract negotiations passed at 11 a.m. EDT.

GM has more than 80 U.S. production sites and more than 73,000 UAW workers employed at their plants. The company’s supply of vehicles for its core U.S. market could be in jeopardy if the strike drags on for any significant time. Because of recent sales downturns, GM has many day’s supply of almost all of it’s top-selling vehicles, so dealers will have ample stock to sell, but a long strike will hurt GM and its retail dealers in terms of vehicle availability.

This is the first GM labor strike of any consequence since 1984, when the UAW struck 25 facilities for 13 days.

The UAW strike comes after two months of negotiations with Detroit’s Big 3, 21 days of negotiations with GM, after the UAW singled out GM as its so-called strike target, and 10 days after the original strike deadline passed.

More details to follow.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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3 Comments

  1. The only way the uaw will get their people to vote for the VEBA is the have a short strike that will give them a few extra signing bonus dollars. Otherwise, they will vote it down.

    If it comes to being voted down, the uaw leadership will negotiate the lower pay, higher health care co-pays and deductibles, different work rules, end of job banks, no more classifications, etc, which they will also vote down.

    Then it will be a case where the leadership will tell their people that those are the only two choices they will have, a VEBA or everything else that GM wants. With the VEBA, everything else stays the same. Guess which one they will want?

  2. If the UAW continues to be mule-like, GM has two choices: move production to China or India, or declare bankruptcy and start fresh. Either way the UAW gets just about zip.

    I don’t see where the UAW has much bargaining strength. Short-term, maybe, but zero bargaining strength long-term.

  3. If the strike goes for more than 30 days, GM will be in trouble. The union seems pretty pissed off about GM in general so maybe the strike doesn’t get settled so quickly, huh?

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