A PAY dispute is behind the work stoppage at General Motors.
FLINT (AFP) — Almost 50,000 US auto workers went on strike on Monday in a pay dispute with General Motors, the largest industrial action to hit the carmaker in more than a decade. Workers from 31 plants opted to walk out after talks between the company and the United Auto Workers Union hit an impasse as they tried to negotiate a replacement agreement when the manufacturer’s four-year contract with workers expired. How long the labor action might last was uncertain.
“The strike can take a little while longer,” Brian Rothenberg, a spokesman for the powerful union, told AFP. He said that only two percent of issues under negotiation had been agreed upon. “We have to find common ground on 98 percent of the remaining issues,” he said, after the strike began at midnight Sunday, with placard-waving strikers forming picket lines outside assembly plants.
Talks were due to resume later in the morning, UAW officials said. Car production at the Detroit giant, which was saved by a multi-billion dollar bailout from the Obama administration after the 2008 economic crash, was brought to a complete standstill on Monday, Rothenberg said.
On Wall Street, GM shares fell 4.3 percent. CNBC said the strike could cost the automaker $90 million a day.
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“This is our last resort,” Terry Dittes, the union’s lead negotiator with GM, told a news conference after the meeting Sunday. “We are standing up for the fundamental rights of working people in this country.”
UAW officials said the two sides remained far apart on wages, health care benefits, the status of temporary workers and job security.
“Our members have spoken; we have taken action; and this is a decision we did not make lightly,” Ted Krumm, chair of the UAW’s national bargaining committee, said in a statement. “We are standing up for what is right,” Krumm said.
US President Donald Trump on Monday exhorted both sides to reach a deal and also told reporters he opposed GM plans to shutter US factories or invest outside the United States. “I’m sad to see the strike. Hopefully it’s going to be a quick one,” he said.
