GM And UAW Resume Negotiations As Workers Continue Their Strike

Negotiations between General Motors and the United Automobile Workers (UAW) union restarted on Monday and are expected to continue for some time after nearly 50,000 employees walked off their posts at 11:59 p.m. on Sunday night.

GM spokesman David Barnas issued a statement on Monday afternoon confirming negotiations had resumed, but sources tell the Detroit Free Press that a solution is unlikely to be found quickly.

“Our goal remains to reach an agreement that builds a stronger future for our employees and our business,” Barnas said in his statement.

Also Read: 46,000 GM Employees Strike After Failed Trade Union Negotiations

Wages and health care are, allegedly, two of the most important areas of debate between GM and the UAW. A person close to the discussions asserts that GM has proposed workers pay 15 per cent of their health care costs, a huge increase over the current estimated level of 3 per cent. Another person with their ear to the negotiations claims that GM has offered to preserve current health care benefits at the same cost.

Either way, it is believed that car manufacturers including GM and Ford spend up to $1 billion a year on worker health care, which many industry experts believe this is unsustainable. The Center for Automotive Research reports that the average worker in the U.S. pays about 28 per cent of their personal health care costs.

“We have many unresolved issues,” vice president of the UAW GM department Terry Dittes said on Monday. “It’s not just a couple of things. How long will this take? I can’t say.”

Some claim that the strike could last two to four weeks, as many workers are upset with the new health care proposal. Credit Suisse analyst Dan Levy says the impact of lost production due to the strike will cost GM roughly $50 million per day.

“GM’s ability to contend with a short-duration strike (no more than one to two weeks) is comfortably supported by its 77 days of U.S. inventory, $17.5 billion of automotive cash, and $16.5 billion available under its credit facility,” Moody auto analyst Bruce Clark commented. “ Beyond the initial one to two weeks, the financial burden of a strike will become more material and the prospects of a contract that avoids erosion of the company’s current competitive position is less likely.”

  • give them that new Jimmy/Canyon project to work on.

  • Swagger

    A little perspective… leading up to its 2009 bankruptcy, GM was losing over $150M per day.

  • USOZ


    United Against Work

    • john1168

      uuhhh… no.

Remember That 3D-Printed Aventador Replica? Well, It Actually Runs!

The Lambo replica is powered by a twin-turbocharged, 5.7-liter Corvette V8 and its bodywork was created by just three cheap 3D printers.

Five Years After Its Recall, A Defective Key Is Still Present In Camaro’s Parts Catalog

The key in question was first recalled by General Motors in June 2014, yet an employee discovered it was still available as a replacement.

2020 BMW X6 M Cabrio Answers A Question No One Asked In The First Place

Good thing BMW has no plans whatsoever of building such a thing, because…. well, it just doesn’t make sense.

1,200 HP Jeep Grand Cherokee SRT8 Makes The Trackhawk Seem Puny

It may be seven years old, but this wildly modified Grand Cherokee is one of the craziest Jeeps out there.

Olympic Athlete Runs In A Bubble Filled With Hyundai Nexo’s Exhaust Flow

The Nexo’s exhaust emits water and 99.9 per cent filtered oxygen – or else the runner would suffocate.

Lunaz Breathes New Life Into Classics With Electric Power And Modern Gear

After a full restoration process, the old mechanical parts are ditched in favor of all-electric powertrains and tech like Wi-Fi .

Totally Burnt Out Ferrari 458 Spider Is Unrecognizable, Yet Up For Sale

Nothing in this pile reminds us of a 458, as it’s been completely destroyed, but someone has decided to put it up for auction.

Goddammit! Delivery Guy Tries To Slice Half A Second Off, Instantly Regrets It

The truck driver apparently pushed the gas pedal instead of the brake.

Driven: 2019 Toyota 86 GT Remains A Compelling Driver’s Car

The Toyota 86 GT with the Dynamic Performance Package is a hoot to drive, despite showing its age in certain areas.

Mazda Continues Testing RX-8 Prototypes At The ‘Ring, Fuels Rotary Return Rumors

Could Mazda bring back the RX nameplate that was killed off in 2012, probably with some kind of electrification? We sure hope so.