The UAW national strike against General Motors (GM) started Saturday, September 14, 2019 (the first in 12 years) with 850 janitorial worker members going out first. These employees are technically employees of supplier Aramark but service GM’s janitorial and other support needs. The maintenance workers have been without a contract for over a year and a half. Then, on Sunday, the UAW declared a strike taking out all its production worker members at midnight.
The strike takes out 49,200 union workers at 33 manufacturing sites and 22 parts warehouses throughout the United States.
Talks between the UAW and GM broke off Sunday but are continuing – although reports are General Motors and the UAW are still far apart. General Motors stated it has offered a generous package that not only includes wage and benefit improvements but also makes significant investment in two plants that are scheduled for shutdown.
An anonymous source speaking to the Associated Press said one new project would be in Detroit and the other would impact the Lordstown, Ohio plant that has already stopped production. On the record, official reports state that the GM offer was for $7 billion in U.S. manufacturing investment and the creation of up to 5,400 new jobs. It has also been reported that the current offer included base wage or lump sum increases in all four years of the contract, improved profit-sharing formula, ratification bonus of $8,000, and health care plan improvements that cover autism therapy, chiropractic care, and allergy testing.
The UAW may be under pressure to produce a much better contract than its members may expect due to the corruption allegations and ongoing federal investigation hovering over its leadership. The rank and file membership may question any offer the UAW leadership goes with as possibly motivated by the corruption the UAW involved itself in. That said, on the other side, GM was helped by the federal government through a $49.5 billion bailout package back in 2008 and 2009. The UAW has stated its members have sacrificed to help GM through its tough times and now wants to share in GM’s profits. The Detroit News reported these profits were $27.5 billion worldwide over the past four years, the time period covered by the contract that expired Saturday night.
ASE Auto Talks Briefing
ASE is planning to hold an Auto Talks Briefing following the settlement of the new contracts for the Detroit Three. Information about this program will be sent out as soon as the program is scheduled.
Source: The Latest: GM, UAW to Resume Talks; Strike Still Planned AP News 9/15/2019. Autoworkers Opt for Strike as UAW-GM Contract Talks Stall Vin Gurrieri Law 360 (9/15/2019) The Detroit News 46,000 UAW Workers Strike at GM Plants Nationwide Kalea Hall, Daniel Howe, Sarah Rahal and Candice Williams (9/16/2019)