GM poised for UAW strike

GM-UAW negotiations continue, but there’s a light at the end of the tunnel. Unfortunately it’s a searchlight attached to a gun, but nonetheless…..

The UAW has called a strike against General Motors for 11 a.m. this morning unless it makes significant progress toward a new contract. The surprise decision comes after nine days of marathon bargaining past last Friday’s contract expiration.

“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 in a prepared statement released at 1:40 a.m. EDT.

The strike deadline was set after a generally optimistic tone prevailed over negotiations all weekend.

GM and UAW will continue to negotiate throughout the night until the strike deadline.

Aside from the 9-7x, this shouldn’t directly disadvantage Saab.

But….a prolonged strike will cause some serious cashflow issues that will have flow-on effects.

Watch this space.

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  1. The UAW is a major part of the GM/Ford/Chrysler financial pit. They aren’t understanding that they are killing the golden goose, and that people that drive forklifts shouldn’t make 40 dollars per hour and lifetime employment went away in the 70’s.

    Plus Gettlefinger in particular is a disagreeable sort it seems, which never helps.

  2. I’m betting it’ll be a short strike. From news accounts it sounds like they’re close and this is the UAW’s last real negotiating move.

    Oddly enough a short strike might be good for GM. That’s a week or two of salary they don’t have to pay, and the supply disruptions won’t be too bad.

    OTOH I’ve seen some sizable legal settlements blow up over issues consisting of less than 1 percent of the total amount of money at stake, so we’ll see . . .

  3. Let ’em go on strike. Bust the unions get on equal footing with the rest of the world. The unions have been pigs over the years. There is an old saying “pigs eat, get fat, become hogs…hogs get slaughtered” Time has come…but wait GM has no backbone and will give in…afterall they are worried about the next fiscal quarters profit and loss statement.

  4. I don’t know much about labor relations (we don’t have a heck of a lot of unions where I live except for the ones at the studios), but when one union goes on strike don’t other unions usually respect that union in a show of solidarity go on strike themselves? So there’s a possibility that though the Morraine, Ohio plant where the 9⁷X is manufactured could go on strike as well?

    It probably doesn’t matter anyway as I read that GM currently has a large buffer of cars that have already been manufactured, so as Swade writes this might actually be good for GM.

    If it does affect the 9⁷X vehicles though, this might do wonders for the collectability of the Aero model, with the 9⁷X being in its last year of manufacture and the Aero’s first-and-only year of manufacture as the Mexican-manufactured 9⁴X is slated to displace it next year.

  5. 1985Gripen,

    I just heard from the people at Moraine that it does not directly affect the 9-7x production at Moraine.

    Other than that, one is speculating.

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