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30 Sep 2019

USA: 49,000 General Motors workers strike over failed contract negotiations covering wages, health insurance & prevention of plant closures; Includes comments from General Motors

 

In September 2019, approximately 49,000 General Motors workers across the USA began to strike after negotiations on a new contract between General Motors and the United Auto Workers union broke down.

Workers say they suffered low wages, temporary contracts and facility closures, to help the company when it went bankrupt. Given their sacrifices to help the company recover, workers say they are not being given enough of a share now that company profits have increased - General Motors achieved over $25bn over the last two years. The union is calling for higher wages, a health insurance plan in which workers pay roughly 3% of the costs, improved pensions and assurances that General Motors will not close plants scheduled for closure.

It is estimated that General Motors has lost over $500 million in profits as a result of the strikes, with an output shortfall of more than 8,000 vehicles a day. The company says it has offered workers a package including a pay rise of 2% in two years, followed by a 2% lump sum payment and investments in closing plants. The union has so far rejected these terms and talks continue. 

In October 2019, the strike came to an end, as United Auto Workers voted to approve a new deal with General Motors. The four-year deal includes a 3% pay rise, $11,000 bonuses for full-time workers, and a limit on the number of hired temporary workers. However, three plants slated for closure will remain closed.

Estimates suggest the strike has cost General Motors $2.9 billion this year, and that the agreed deal will result in an added $100 million a year on labour costs. 

Comments from General Motors in response to the strikes and workers' demands can be found in the articles linked below.

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