Auto workers strike against GM
Monday, September 24, 2007 at 12:36 PM
Thousands of members of the United Automobile Workers (UAW) union walked off the job today at General Motors plants across the country as the two failed to reach an agreement over new contract negotiations.
The UAW has 73,000 members who work for GM at 82 U.S. facilities, including assembly and parts plants and warehouses.
GM has been pushing hard for a health care trust (known as a Voluntary Employees Beneficiary Association, or VEBA) so it could move $51 billion in unfunded retiree health costs off its books. GM estimates the liability is a stumbling block to becoming competitive with leaner Japanese manufacturers.
Even after a deal is reached at GM, the union must still come to agreements at Ford and Chrysler, where the issue of a health care trust is likely to be discussed.
Together, the three auto companies have a collective liability of around $100 billion. The VEBA health care trust, would take over responsibility for paying benefits to workers and their families.
It remains to be seen what effect the strike would have on GM sales, though it has enough in stock to withstand a "short" strike. GM had an estimated 65-day supply of cars and trucks when September began, but a strike will still be costly for the company.
In 1998, GM vehicle output was shut down nationwide by local strikes at the Flint Metal Center and a Delphi parts plant in Flint. The shut down stopped GM’s North American production for 54 days and cost the company $2.2 billion.
Over 90% of GM vehicles offer factory-installed XM Satellite Radio.
[AP, New York Times]
UPDATE: According to CNBC, it's estimated that GM will lose $100 Million daily, and 12,200 vehicles daily, as a result of this strike.
Monday, September 24, 2007 at 12:36 PM
Thousands of members of the United Automobile Workers (UAW) union walked off the job today at General Motors plants across the country as the two failed to reach an agreement over new contract negotiations.
The UAW has 73,000 members who work for GM at 82 U.S. facilities, including assembly and parts plants and warehouses.
GM has been pushing hard for a health care trust (known as a Voluntary Employees Beneficiary Association, or VEBA) so it could move $51 billion in unfunded retiree health costs off its books. GM estimates the liability is a stumbling block to becoming competitive with leaner Japanese manufacturers.
Even after a deal is reached at GM, the union must still come to agreements at Ford and Chrysler, where the issue of a health care trust is likely to be discussed.
Together, the three auto companies have a collective liability of around $100 billion. The VEBA health care trust, would take over responsibility for paying benefits to workers and their families.
It remains to be seen what effect the strike would have on GM sales, though it has enough in stock to withstand a "short" strike. GM had an estimated 65-day supply of cars and trucks when September began, but a strike will still be costly for the company.
In 1998, GM vehicle output was shut down nationwide by local strikes at the Flint Metal Center and a Delphi parts plant in Flint. The shut down stopped GM’s North American production for 54 days and cost the company $2.2 billion.
Over 90% of GM vehicles offer factory-installed XM Satellite Radio.
[AP, New York Times]
UPDATE: According to CNBC, it's estimated that GM will lose $100 Million daily, and 12,200 vehicles daily, as a result of this strike.
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