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Drew Dowdell

GM News: UAW to Strike General Motors Tonight

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The UAW declared a national strike against General Motors, a first since 2007, after GM failed to reach a deal with union leaders over wages and benefits.  A union spokesman said it was a unanimous vote to strike and that the status of the negotiations are unclear. 

General Motors said that its offer to the UAW included more than $7 billion in U.S. investments, jobs, higher pay, and improved benefits.  It included an offer for more than 5,400 jobs, the majority of which would be new.  The offer would allocated an electric truck to Detroit-Hamtramck assembly plant and Lordstown would be reopened as a battery assembly plant. 

The UAW's previous contract with General Motors expired on Saturday at midnight, but workers were told to continue to show up to work under the terms of the prior contract while negotiations were ongoing.  Fiat Chrysler Automobiles and Ford Motor Company have extended their current contracts while the GM talks are happening.


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Hope they come to terms sooner rather than later on this. Glad to read that Lordstown will reopen as a battery assembly plant and the EV pickup truck will go to Detroit-Hamtrack.

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Sounds like the best deal they are going to get. They better jump on it!!!

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It is kind of a catch 22, because the UAW wants more for their workers, but the more they get paid the more GM is going to be motivated to automate more jobs or build more cars in China.   It is a fine balance.

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I wonder how it would land if GM actually replaced their union workforce with a nonunion one.

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In reading a few articles & commentary on the subject, one person claimed that the bankruptcy, 'if done properly', would have started everything at zero with the new corporation, including nullifying all union/worker contracts. Instead Gov't forced those components to be tied immediately to the new entity.

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2 hours ago, smk4565 said:

It is kind of a catch 22, because the UAW wants more for their workers, but the more they get paid the more GM is going to be motivated to automate more jobs or build more cars in China.   It is a fine balance.

Try Mexico. Pretty sure GM would be dumb to test the tariffs right now.

GM is automating the the next few years UAW or not. Union knows this.....

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GM and Ford need to get out of these unions. 

Toyota and Honda aren't using union labor and you don't see them with labor issues. 

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Ridiculous. UAW is all about GREED. Compare them to a Socialist Gov't. and the similarities are pretty apparent. They need to be shut down for sure, but they're so political anymore with special interest groups pushing them that it would be hard. GM will just keep building on their automation, adding more robots when each one can do the job of several greedy humans.

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14 hours ago, balthazar said:

In reading a few articles & commentary on the subject, one person claimed that the bankruptcy, 'if done properly', would have started everything at zero with the new corporation, including nullifying all union/worker contracts. Instead Gov't forced those components to be tied immediately to the new entity.

The BK did give GM the ability to get out of many of the expensive Legacy Healthcare costs they were enduring and to renegotiate the huge pensions. I used to work with a guy that had family retire with GM in the late 90's with six digit pensions and really good healthcare for life. Ridiculous. UAW is all about Greed more cash for the workers means more for the greedy upper mgmt. No surprise the UAW president's home was recently raided by the FBI because of several scandalous reports.   

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16 hours ago, riviera74 said:

I wonder how it would land if GM actually replaced their union workforce with a nonunion one.

Does work well for the Asian brands here in the U.S., all are private company employees and they happily make much less (think I read it's around half as much) than the bloated wages of the UAW workers. $60 - 75/hr. is ridiculous unless they're a highly educated engineer, mostly unskilled laborers should never make $60+ an hr. to bolt on a door or fender. GM and Ford could be much more profitable with healthy cash flow without the UAW.

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17 hours ago, smk4565 said:

It is kind of a catch 22, because the UAW wants more for their workers, but the more they get paid the more GM is going to be motivated to automate more jobs or build more cars in China.   It is a fine balance.

I remember working for a Chevy/Cadillac dealer in '98 for a Summer job in between college during the GM shutdown UAW strike. GM said F you UAW and shut it all down. We were a huge dealer so we had plenty of inventory, but smaller dealers were calling all day everyday up and down the West Coast for trades that we had. It was something like two Suburbans for one C/K truck we had, it was nuts. It lasted 6+ months and GM lost billions in sales, but had to make a point and they did UAW finally conceded and gave GM mostly what they wanted, any smaller auto manf. would have been gone.

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20 minutes ago, USA-1 Vortec 6.2 said:

Does work well for the Asian brands here in the U.S., all are private company employees and they happily make much less (think I read it's around half as much) than the bloated wages of the UAW workers. $60 - 75/hr. is ridiculous unless they're a highly educated engineer, mostly unskilled laborers should never make $60+ an hr. to bolt on a door or fender. GM and Ford could be much more profitable with healthy cash flow without the UAW.

Guess I should have said the Big 2 and FCA🤔😏

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GM laid out their side, showed their hand.... what is the UAW asking for that isn't in the deal?

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17 hours ago, Potluck said:

GM laid out their side, showed their hand.... what is the UAW asking for that isn't in the deal?

Right, GM is using transparency to force the UAW to come to fair terms. Love the way this is being done by GM and hope all auto companies that have to deal with the corrupt greedy unions follow this road map. No need for hiding anything. Show the fair deal and let the union members tell their greedy lazy leadership to take it.

https://www.msn.com/en-us/money/companies/gm-strikes-dont-pack-economic-punch-they-once-did/ar-AAHqEz4?li=BBnb7Kz

I also agree that as @daves87rs stated, this is a good deal and they should jump on it as a Union strike is NOT going to have the impact on the US as they did in the 70's or 80's. Those days are over.

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it seems like they're arguing over the amount of healthcare the UAW people should pay.

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I read a bunch of UAW worker comments elsewhere online. In addition to the usual list of; job guarantees, safety in the workplace (not there yet after 80 years of union efforts???????????), and healthcare [the national average for worker contribution to HC is 28%, GM proposed UAW workers paying 15%] ...the VAST majority of comments solely mentioned how much Mary Barra made and how much GM made. This is always the root of the OEM / UAW head butting.

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1 hour ago, balthazar said:

I read a bunch of UAW worker comments elsewhere online. In addition to the usual list of; job guarantees, safety in the workplace (not there yet after 80 years of union efforts???????????), and healthcare [the national average for worker contribution to HC is 28%, GM proposed UAW workers paying 15%] ...the VAST majority of comments solely mentioned how much Mary Barra made and how much GM made. This is always the root of the OEM / UAW head butting.

Yup. Greedy UAW, they run it like a Socialist Gov't, take from the rich give to the poor, but when the money runs out, then what? 

Edited by USA-1 Vortec 6.2

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Interesting report released on Healthcare average cost paid by US employees is 26%, so GM is offering a good deal and yet this same report only shows that 75% of Union Employees use the company healthcare plan.

https://www.bls.gov/news.release/pdf/ebs2.pdf

After looking at this report, I say GM stick to your guns as this is a good deal.

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Shut them down.

Offer them their same job, same pay, same benefits they currently have back to them but all new hires things will be what they want. 

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7 minutes ago, ccap41 said:

Shut them down.

Offer them their same job, same pay, same benefits they currently have back to them but all new hires things will be what they want. 

Or you could just hire an all-new workforce.  A job is NOT a job for life.

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50 minutes ago, riviera74 said:

Or you could just hire an all-new workforce.  A job is NOT a job for life.

training up 50,000 people would take a looong time and really hurt quality.

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52 minutes ago, riviera74 said:

Or you could just hire an all-new workforce.  A job is NOT a job for life.

GM losing $90M a day per BofA just offered 2% raises on top of previous offer, but cut off Healthcare to the 50k striking picketers because UAW can offer paid COBRA. Just take the generous deal greedy UAW.

https://www.msn.com/en-us/money/companies/sources-gm-offers-2percent-raises-in-uaw-contract-ends-health-care/ar-AAHqRV8?li=BBnb7Kz

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Sure unions are greedy, but GM had $8 billion on net income least year, Mary Barra made $22 million.  Corporations are greedy too.

Maybe what GM should do is offer a profit share bonus, so on years like 2018 when there is an $8 billion profit, take $1 billion of that and pay to the workers.  So then the workers also have incentive to build quality product, and ensure the company does well.

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