Tuesday, 25 September 2007
United Auto Workers strike nationally against General Motors
« Safer vehicles may prompt new tougher crash tests | Main | And just like that, the General Motors strike ends as the UAW and automaker reach labor agreement »It had been over 30 years since the United Auto Workers went on strike nationally against an automaker, when Ford employees walked out in 1976. But yesterday at 11 a.m. about 73,000 unionized General Motors employees took to the picket lines in an effort to secure desired wages, benefits and job security. The largest American automaker has not experienced a national strike in almost 40 years; in 1970 approximately 400,000 GM employees stopped working for 67 days.
The prevailing sentiment seems to be that the strike is not desirable for either side, and that a quick resolution would solidify the move as a “symbolic gesture” by the UAW. An article over at MSNBC suggests that GM could be losing approximately $100 million each day due to the strike, but that the automaker can endure a brief stoppage. Various estimates say between a couple weeks and a couple months would not substantially harm the automaker. Of course, a prolonged strike could prove disastrous for General Motors, as the company is trying to get back to profitability and is relying on several upcoming vehicles (such as the 2008 Chevy Malibu) to do so.
But UAW workers will eventually feel the strain of not working as well. The organization’s “strike fund” is estimated between $800 and $900 million, but individual employees still get just $200 per week when on strike, a drastic cut in pay. Some analysts do not see the stoppage lasting more than a week, and longer would eventually prompt investors to pressure the automaker to reach an agreement with its employees. At the end of August GM had a 65-day supply of vehicles at dealers, although after a few weeks dealers could begin to feel the strike as certain models could become less attainable.
Source: Detroit Free Press, New York Times, MSNBC and Forbes
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