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No end in sight as GM strike hits week 2
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The strike against General Motors by 49,000 United Auto Workers entered its second week yesterday with progress reported in negotiations but no clear end in sight.
Bargainers met all weekend and returned to talks yesterday鈥檚 morning as the strike entered its eighth day.
A person briefed on the negotiations says they鈥檙e haggling about wages and profit-sharing, new product for factories that GM wants to close, a faster route to full wages for new hires and use of temporary workers. The person didn鈥檛 want to be identified because details of the bargaining are confidential.
Workers walked off their jobs early on September 16, paralyzing production at about 30 manufacturing sites in nine states.
Already the strike forced GM to shut down two Canadian factories that make engines, older-model pickup trucks and two car models. If the strike drags on much longer, GM likely will have to close more factories in Mexico and Canada because engines, transmissions and other components are built in the United States. Companies that supply parts to GM also will have to start cutting production.
Consumers this week will start to see fewer trucks, SUVs and cars on dealer lots. Cox Automotive said that GM had stocked up before the strike with a 77-day supply of vehicles.
Workers also will feel pressure. They got their last GM paycheck last week and will have to start living on US$250 per week in strike pay.
The union wants a bigger share of GM鈥檚 more than US$30 billion in profits during the past five years.
But the company sees a global auto sales decline ahead and wants to bring its labor costs in line with US plants owned by foreign automakers.
GM鈥檚 total labor costs including benefits are about US$63 per hour compared with an average of US$50 at factories run by foreign-based automakers mainly in the South.
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