GM Workers Vote To Strike At Midnight

Negotiations are set to resume at 10 AM EDT on Monday.

Following unsuccessful negotiations over wages and benefits between United Auto Workers and General Motors, the association announced over the weekend a national strike against the manufacturer. Just before midnight on Monday, at 11:59 PM EDT Sunday, roughly 46,000 hourly GM workers left the production lines, and Terry Dittes, vice president of the UAW-GM department, described the move as the “last resort.” A spokesman for the union told Automotive News the decision for the strike was unanimous and that negotiations are set to continue at 10 AM EDT on Monday.

According to information from “a source with knowledge of the negotiations,” an offer from General Motors came very late Saturday night and it was no good. In fact, the two sides agreed in principle on just two percent of what’s in a normal contract. On the majority of issues, UAW and GM are not even close to getting an agreement.

In a statement from yesterday, GM said: “We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways and it is disappointing that the UAW leadership has chosen to strike at midnight tonight. We have negotiated in good faith and with a sense of urgency. Our goal remains to build a strong future for our employees and our business.” The automaker offered UAW more than $7 billion in investments, higher “best-in-class” wages, and revised benefits, plus 5,400 new jobs.

Analyst specialists estimate the strike may cost GM about $50 million a day in earnings before interest and taxes.

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“We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways and it is disappointing that the UAW leadership has chosen to strike at midnight tonight. We have negotiated in good faith and with a sense of urgency. Our goal remains to build a strong future for our employees and our business.”

Offer details:

Over $7 billion in investments and more than 5,400 Jobs:

  • Solutions for unallocated assembly plants in Michigan and Ohio
  • Investments in eight facilities in four states
  • Introduction of all-new electric trucks
  • Opportunity to become the first union-represented battery cell manufacturing site in the U.S.
  • Additional new vehicle and propulsion programs

Best-in-Class Wages and Benefits:

  • Wage or lump sum increases in all four years
  • Improved Profit Sharing Formula
  • Ratification payment of $8,000
  • Retain nationally-leading health care benefits
  • New coverage for autism therapy care, chiropractic care and allergy testing

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