General Motors Corp. (NYSE: GM) has the UAW as a thorn in its side once again, as UAW President Ron Gettelfinger has picked a fight with GM about proposed funding for the automaker's retiree health fund. Is this the same old song and dance we've seen before?
UAW officials labeled GM as a "strike target" less than 24 hours after disputing procedures for funding GM's retiree health care fund, and the contract between the union and Detroit's GM ends at midnight tonight. So, there are about 14+ hours left for the two boys in the sandbox to put aside differences and come to a compromise. Place your bets now.
With the big three (or big two, if you're talking public companies) having a combined $114 billion in health care obligations, the fight between auto unions and large domestic automakers will see no end, if ever. But, in recent contract talks, the spirit of the meetings was described as "cooperative talks." Well, until the last minute (like always). Tempers are flaring most likely, and egos are dropping bombs all over the meeting room floor (maybe even f-bombs, heh).
But with the three largest domestic automakers losing a combined $15 billion in 2006, the UAW relented in its fight to get them agreeing on paying for all health care costs for all employees, active and retired. Looks like that "you all pay for everything" stance is back in some form. GM does not need employees walking out to picket at this point in 2007, but that is possibly what could happen over the weekend based on what happens in Detroit today.
General Motors (GM) and the UAW set up strike showdown today
Posted Sep 14th 2007 10:32AM by Brian White
Filed under: Bad news, General Motors (GM)
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Reader Comments (Page 1 of 1)
9-14-2007 @ 11:56AM
Van said...
It will not happen..that is a "strike"....GM (Waggoner & Gettlefinger) have agreed in terms many months ago, not to put each other "in the corner"....Example: There has been no huge executive bonuses at GM which "rubs" the UAW the wrong way during contract concessions and in turn, the company has not "taken advantage" of the situation and "demanded" the Union do this or do that.......No strike and a very flexible new contract is around the corner....The company will now "grow their business in North America" and GM stock will double by the end of the year.....
9-15-2007 @ 1:08PM
Michael said...
Boring. Soooo over it.
My next car is a Harley Davidson.
9-14-2007 @ 2:01PM
Gumby said...
I really hope that the management already has contigency plans to shut down all the friggin N America plants if UAW picket outdoors . GM already built half of all GM cars outside US of A. I feel that GM has enough to lean on without the N American plants. If this means the end of Impalas, Silverados, Tahoes, Cobalts, Malibus. Aveos....So be it!! Not worth losing money on UAW!! I wish GM can spin off N American operations to gullible private equity investors and keep the rest and rename it International Motors!!! So long , GM!!! Dusting off my hands!!! Ciao!!
9-14-2007 @ 2:01PM
Gumby said...
The last time in 1998 UAW struck GM was when GM was making nice, nice profits and enjoying 31% of the market share. That damn 59 day strike costed GM 7% market share that was never recovered ever since. GM is now at 24% or less market share. Another strike will mean additioanl plant closures and antoher 7% market share. UAW is sacrificing UAW sheeps who are dumb enough to vote to strike... on top of recent job buyouts.. My, my, my.... I think UAW is more concerned about health issues than brotherhood jobs..... UAW is trying to save it asses.... UAW is more than happy to let out dumb UAW sheeps!!!
9-14-2007 @ 3:18PM
Kurt said...
"Thorn in [GM's] side"????? Brian White doesn't seem to have much knowledge of the auto industry, or he'd know that GM is, in fact, happy to be selected as the 'strike' target. All 3 automakers, as in every contract year, vie with each other to be the 'target' so that they can negotiate the best terms for themselves, whereupon the UAW (foolishly) tries to impose those same terms on the other 2.
9-15-2007 @ 10:33AM
jeff said...
some of you people should be ashamed of yourselves. "two boys in a sandbox" these are people jobs and lives. how colorful mr. white. labor costs only account for 10% of gms total vehicle cost. what about the millions and millions in bonuses gm pays out to its exectutives for subpar performances? delphi can afford to pay out 37 MILLION
9-15-2007 @ 10:15PM
robert said...
Where do people think their pay and benefits came from???--It was the Union that fought for these benefits and everyone else went along for the ride. Without the unions everyone would be screwed.
9-26-2007 @ 9:25AM
chas. davie said...
America is the world consumer! If you do not have a balance of power we all lose. The rich believe that "cooley" labor is the answer to growing the business. Henry Ford showed us wages have to be high enough to buy the product. The industial revolution,the establishment of middle class was only accomplished by "Unionism".The elimination of the middle class would distroy America as we know it. And the world. Even big business would lose. Business have to do manage the company to do well. Do hard work!