Why U.A.W. strike?
One of the major objectives of the Union is to obtain G.M. to reopen a car factory in Lordstown, Ohio, a goal that President Trump has endorsed. G.M. closed that plant and others in Baltimore and Warren, Michigan, as part of cost-cutting efforts that eliminate 2,800 factory jobs and thousands of white-collar jobs.
Another important point is the wage structure of the automaker: workers who started with GM before 2007 earn about $ 31 an hour, most employees have since made much less, and so-called temporary workers are at the bottom of the scale at about $ 1
What was the economic impact?
Every day the strike continues, the economic impact spreads throughout the automobile supply chain, leading to redundancies in factories that supply G.M. with parts and disturbing restaurants that rely on the patronage of auto workers.
In Mexico and Canada, G.M. factories that depend on US factories have been shut down, leaving thousands jobless. In Flint, Mich., At least 1,200 truckers and production staff from suppliers lost their jobs because of the strike, including hundreds of Lear, a field service provider for G.M.
The strike also costs the Union, its members and G.M. hundreds of millions of dollars of lost fees, salaries, and revenue. In the US, 34 G.M. the plants darkened, forcing striking workers to make a subsidy of $ 250 a week from the union.
What does the deal mean for other automakers?
If the General Motors contract is ratified, U.A.W. will focus on Ford Motor or Fiat Chrysler. Contracts with these manufacturers expired on September 14, but workers continued to report to assembly lines while the union negotiated with G.M.
G.M. there is a smaller U.A.W. labor force from its competitors in Detroit. But the union strives for G.M. since the carmaker has made solid profits – making $ 35 billion in North America over the past three years – as it closes factories in the United States.
U.A.W. will likely try to reach similar conditions with Ford and Fiat Chrysler, a standard practice known as model deals.
Neil E. Will contribute to reporting.