- ‘Welcome to the edge of freedom’: Biden’s boots touch down in DMZ
- Obama: Hole U.S. ‘digging out of’ requires billions more in unemployment benefits
- Obama’s regulatory agenda will cost U.S. economy $143B next year: report
- Patriot Act author on James Clapper: Fire, prosecute him
- Russia P.M. Medvedev: No amnesty for political prisoners
- Michigan GOP Senate hopeful reminds government is the ‘servant’
- Christmas, by Congress: Members mull a 15-cent tax on trees
- U.S. unemployment falls to five-year low of 7 percent; 203K jobs added
- World mourns Nelson Mandela and celebrates his life; burial set for Dec. 15
- Bill O’Reilly reminds: Nelson Mandela ‘was a communist’
GM talks collapse; autoworkers strike
Thousands of General Motors autoworkers went on strike nationwide yesterday after talks between the automotive giant and the United Auto Workers union on a new labor contract broke down.
It is the first nationwide autoworkers strike since 1976.
Talks resumed between the two sides yesterday.
Negotiators were at the bargaining table for more than 25 straight hours from Sunday morning until the strike, which started about 11:30 a.m., when talks broke down over job security, the UAW said.
Union officials said they want GM to promise that future cars and trucks such as the replacement for the Chevrolet Cobalt small car or the Chevrolet Volt plug-in electric car, still on the drawing board, will be built at U.S. plants.
“We’re shocked and disappointed that General Motors has failed to recognize and appreciate what our membership has contributed during the past four years,” UAW President Ron Gettelfinger said.
Health care costs are another sticking point. The nation’s largest auto manufacturer wants to cut rising labor and health care costs, and the union is determined to protect pay and benefits of the 73,000 members at GM’s 82 plants and warehouses. UAW membership has shrunk by two-thirds over the past three decades.
“The auto industry plays a less important role than it has in the past. But what”s important is what this says about health care benefits and health insurance,” said Mike Davis, a professor and economist with Southern Methodist University’s Cox School of Business.
“The impact on GM will be negligible if it”s a short strike. However, there is a new reality facing companies: Employers can no longer afford the great benefits they promised to employees.”
The shutdown will cost GM about 12,200 vehicles in the U.S. each day to start, CSM Worldwide Inc. estimated. That may spread to more than 18,100 a day counting Canada and Mexico.
General Motors Corp.’s inventory of unsold cars and trucks provides a cushion for the company, analysts said yesterday.
“Current inventories are adequate to sustain dealers for two to three months,” said Brian Johnson, a Lehman Brothers analyst in Chicago. The Detroit company needed to halt production for about 15 days “making a two-week strike actually, ironically, a lower-cost way to adjust inventory,” he said.
GM officials said they were disappointed in the UAW’s decision.
“The bargaining involves complex, difficult issues that affect the job security of our U.S. work force and the long-term viability of the company. We are fully committed to working with the UAW to develop solutions together to address the competitive challenges facing General Motors,” the company said on its Web site.
GM is restructuring so it can better compete with Asian automakers, but must deal with the labor strike as some of its new products begin to catch on with consumers.
- Bill OReilly reminds: Nelson Mandela was a communist
- Spike in battlefield deaths linked to restrictive rules of engagement
- Obama: Hole U.S. 'digging out of' requires billions more in unemployment benefits
- Snow storm sucker punch: U.S. hit by winter wave
- Syria mess may spawn 'Islamic emirate' world must deal with, says Iraq's top diplomat
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
- Hack attack: 2 million Facebook, Twitter passwords stolen
- U.S. debt jumps a record $328 billion tops $17 trillion for first time
- GORDON: Purging America's military
- Obamacare's bold vision turns murky: Health reform downsized, promises broken
Independent voices from the The Washington Times Communities
Get in the middle of all the action inside and outside the boxing ring.
Opinion, analysis, and musings on politics, pop culture, reinvention, and the resultant flotsam and jetsam floating around the right-of-center quadrant of the Left Coast.
The cold hard truth about politics in America today and the state of this once great nation.
Find the latest news and happening that effect those in the Washington D.C., Northern Virginia and Maryland Metro region.
White House pets gone wild!