Last night the United Auto Workers union went on strike against General Motors. According to CNN Business, this is “the first work stoppage in the US auto industry in 12 years.” Nearly 50,000 union members walked out “at 31 GM factories and 21 other facilities, spread across nine states, mostly in the center of the country” beginning at 11:59pm last night. The union’s intention was to strike at a Monday morning press conference because “GM was putting profits ahead of employees who helped turn the company around when it went through bankruptcy and federal bailout a decade ago.”
According to the CNN Business article, General Motors has said “it made a substantial offer, including higher pay and profit sharing, along with investment to bring new jobs.” Specifically, GM said it offered “to commit to invest $7 billion in coming years to preserve 5,400 jobs. It also promised a ‘solution’ for two of the four plants currently slated for closure: one in Detroit and another in Lordstown, Ohio.”
On the side of the Union, they are “seeking higher hourly wages, lump sum payments and a better profit sharing plan. It also wants GM to agree to limit the use of temporary workers and give them a clearer path to permanent employment.”
However, the strike is occurring at a time when the union has been hit by a scandal. Apparently, there has been misappropriation of union funds, “and in some cases, union officials accepting bribes from officials at Fiat Chrysler. Nine people associated with the union or Fiat Chrysler have already pleaded guilty to federal charges.”
CNN reports that “experts say the scandal will make it more difficult to get rank and file union members at the automakers to ratify any tentative deal reached by union leadership.”
Continue Reading: CNN Business
