Workers strike early Monday photo courtesy WROC TV
DETROIT (AP) ā More than 49,000 members of the United Auto Workers walked off General Motors factory floors or set up picket lines early Monday as contract talks with the company deteriorated into a strike.
Workers shut down 33 manufacturing plants in nine states across the U.S., as well as 22 parts distribution warehouses.
It wasn't clear how long the walkout would last, with the union saying GM has budged little in months of talks while GM said it made substantial offers including higher wages and factory investments.
It's the first national strike by the union since a two-day walkout in 2007 that had little impact on the company.
GM workers joined striking Aramark-employed janitors assigned to GM facilities on the picket lines Sunday night at a sprawling factory on the border between Detroit and the small town of Hamtramck.
Worker Patty Thomas said she wasn't scheduled to picket, but came out to support her colleagues at the car plant, which GM wants to close.
She's heard talk that GM may keep the factory open and start building electric pickup trucks there, but she's skeptical.
"What are they going to take away?" she asked. "That's the big issue."
She said workers gave up cost-of-living pay raises to help GM get through bankruptcy, and workers want
some of that back now that the company is making profits.
Striking GM employees were joined on the picket lines by workers from Ford and Fiat Chrysler, who are working under contract extensions.
Night shift workers at an aluminum castings factory in Bedford, Indiana, that makes transmission casings and other parts shut off their machines and headed for the exits, said Dave Green, a worker who transferred from the now-shuttered GM small-car factory in Lordstown, Ohio.
Green, a former local union president, said he agrees with the strike over wages, plant closures and other issues.
"If we don't fight now, when are we going to fight?" he asked. "This is not about us. It's about the future."
UAW Vice President Terry Dittes, the union's top GM negotiator, said a strike is the union's last resort but is needed because both sides are far apart in negotiating a new four-year contract. The union, he said Saturday, does not take a strike lightly.
"We clearly understand the hardship that it may cause," he said. "We are standing up for fair wages, we are standing up for affordable quality health care, we are standing up for our share of the profits."
GM, however, said it offered pay raises and $7 billion worth of U.S. factory investments resulting in 5,400 new positions, a minority of which would be filled by existing employees. GM would not give a precise number. The company also said it offered higher profit sharing, "nationally leading" health benefits and an $8,000 payment to each worker upon ratification.
Because public statements from both sides conflict, it's hard to tell how long the strike will last, said Kristin Dziczek, vice president of labor and industry at the Center for Automotive Research, an industry think tank. The length "depends on how far apart they really are and where the lines in the sand are drawn," she said.
Talks were scheduled to resume at 10 a.m. EDT on Monday.
The union's contract with GM expired Saturday night, but pacts with the company's crosstown rivals, Ford and Fiat Chrysler, were extended indefinitely. The union has picked GM as its target company this year, and any deal it negotiates will be used as a template for the others. GM was picked because it's the most profitable of the three, and because its plans to close four U.S. factories have angered union members.
On Sunday, about 200 plant-level leaders voted unanimously to strike against GM if no deal could be reached by Sunday night. Although talks were halted over the weekend, UAW spokesman Brian Rothenberg said there was still dialogue.
Before the talks broke off, GM offered to build a new all-electric pickup truck at a factory in Detroit that is slated to close next year, according to a person who spoke to The Associated Press on condition of anonymity. The person wasn't authorized to disclose details of the negotiations.
The automaker also offered to open an electric vehicle battery plant in Lordstown, Ohio, where it has a huge factory that has already stopped making cars and will be closed. The new factory would be in addition to a proposal to make electric vehicles for a company called Workhorse, the person said.
It's unclear how many workers the two plants would employ. The closures, especially of the Ohio plant, have become issues in the 2020 presidential campaign. President Donald Trump has consistently criticized the company and demanded that Lordstown be reopened.
Rothenberg said UAW was striking for fair wages, affordable health care, profit sharing, job security and a path to permanent employment for temporary workers.
GM has factories in Michigan, Ohio, New York, Kentucky, Tennessee, Texas, Missouri, Indiana and Kansas.
A strike would bring to a halt GM's U.S. vehicle and parts production, and would likely stop the company from making vehicles in Canada and Mexico as well. That would mean fewer vehicles for consumers to choose from on dealer lots, and it would make it impossible to build specially ordered cars and trucks.
Analysts at Cox Automotive said GM has enough vehicles on dealer lots to last about 77 days at the current sales pace. That's well above the industry average of 61. But supplies of the Chevrolet Tahoe and
Suburban large SUVs, which generate big money for the company, are well below the industry average.
The talks this year have been overshadowed by a growing federal corruption probe that snared a top union official on Thursday. Vance Pearson, head of a regional office based near St. Louis, was charged in an alleged scheme to embezzle union money and spend cash on premium booze, golf clubs, cigars and swanky stays in California. It's the same region that UAW President Gary Jones led before taking the union's top office last year. Jones himself has been touched by the investigation, leading some union members to call for him to step down, but he hasn't been charged.
This year's talks between the union and GM were tense from the start, largely because of GM's plan to close four U.S. factories, including the one on the Detroit border with the enclave of Hamtramck, as well as Lordstown and factories in Warren, Michigan, and near Baltimore.
Here are the main areas of disagreement:
ā GM is making big money, $8 billion last year alone, and workers want a bigger slice. The union wants annual pay raises to guard against an economic downturn, but the company wants to pay lump sums tied to earnings. Automakers don't want higher fixed costs.
ā The union also wants new products for the four factories slated to close. GM currently has too much U.S. factory capacity, especially to build slower-selling cars.
ā The companies want to close the labor cost gap with workers at plants run by foreign automakers. GM pays $63 per hour in wages and benefits compared with $50 at the foreign-owned factories. GM's gap is the largest at $13 per hour, according to figures from the Center for Automotive Research.
ā Union members have great health insurance plans and workers pay about 4% of the cost. Employees at large firms nationwide pay about 34%, according to the Kaiser Family Foundation. Automakers would like to cut costs.
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DETROIT (AP) ā The United Auto Workers union announced Sunday that its roughly 49,000 workers at General Motors plants in the U.S. would go on strike just before midnight because contentious talks on a new contract had broken down.
About 200 plant-level union leaders voted unanimously in favor of a walkout during a meeting Sunday morning in Detroit. Union leaders said the sides were still far apart on several major issues and they apparently weren't swayed by a GM offer to make new products at or near two of the four plants it had been planning to close, according to someone briefed on the matter.
"We stood up for General Motors when they needed us most," union Vice President Terry Dittes said in a statement, referring to union concessions that helped GM survive bankruptcy protection in 2009. "Now we are standing together in unity and solidarity for our members."
It's still possible that bargainers could return to the table and hammer out an agreement, but union spokesman Brian Rothenberg said at a news conference that it would be unlikely because it is hard to believe they could resolve so many issues before 11:59 p.m.
GM on Friday offered to build a new all-electric pickup truck at a factory in Detroit that is slated to close next year, according someone who spoke to The Associated Press on the condition of anonymity because that person wasn't authorized to disclose details of the negotiations, which hadn't been released to the public. The automaker also offered to open an electric vehicle battery plant in Lordstown, Ohio, where it has a plant that has already stopped making cars. The new factory would be in addition to a proposal to make electric vehicles for a company called Workhorse, the person said.
It's unclear how many workers the two plants would employ. The closures, especially of the Ohio plant, have become issues in the 2020 presidential campaign. President Donald Trump has consistently criticized the company and demanded that Lordstown be reopened.
The UAW's Rothenberg said the company made general statements about why it is planning to strike, but he would not comment further on GM's offer. The union said it would strike for fair wages, affordable health care, profit sharing, job security and a path to permanent employment for temporary workers.
In a statement, GM also said the offer made to the union on Saturday included more than $7 billion in U.S. factory investments and the creation of 5,400 new positions, a minority of which would be filled by existing employees. GM would not give a precise number. The investments would be made at factories in four states, two of which were not identified.
The statement also said the company offered "best in class wages and benefits," improved profit sharing and a payment of $8,000 to each worker upon ratification. The offer included wage or lump sum increases in all four years of the deal, plus "nationally leading" health benefits.
The announcement came hours after the union let its contract with GM expire Saturday night.
If there is a strike, picketers would shut down a total of 53 GM facilities, including 33 manufacturing sites and 22 parts distribution warehouses. GM has factories in Michigan, Ohio, New York, Kentucky, Tennessee, Texas, Missouri, Indiana and Kansas.
On Saturday, Dittes, the union's chief bargainer, said in a letter to GM members that after months of bargaining, both the union and GM were far apart on issues such as wages, health care, temporary employees, job security and profit-sharing. The letter to members and another one to GM were aimed at turning up the pressure on GM negotiators.
A strike would bring to a halt GM's U.S. production, and would likely stop the company from making vehicles in Canada and Mexico as well. That would mean fewer vehicles for consumers to choose from on dealer lots, and it would make it impossible to build specially ordered cars and trucks.
The strike would be the union's first since a two-day work stoppage at GM in 2007.
On Friday, union leaders extended contracts with Ford and Fiat Chrysler indefinitely, but the pact with General Motors was still set to expire Saturday night.
The union picked GM, which is more profitable than Ford and Fiat Chrysler, as the target company, meaning it's the focus of bargaining and would be the first company to face a walkout.
Talks between the union and GM were tense from the start, largely because GM plans to close four U.S. factories, including the one on the Detroit border with the enclave of Hamtramck, and Lordstown. The union has promised to fight the closures.
Here are the main areas of disagreement:
ā GM is making big money, $8 billion last year alone, and workers want a bigger slice. The union wants annual pay raises to guard against an economic downturn, but the company wants to pay lump sums tied to earnings. Automakers don't want higher fixed costs.
ā The union also wants new products for the four factories GM wants to close. The factory plans have irked some workers, although most of those who were laid off will get jobs at other GM factories. GM currently has too much U.S. factory capacity.
ā The companies want to close the labor cost gap with workers at plants run by foreign automakers. GM pays $63 per hour in wages and benefits compared with $50 at the foreign-owned factories. GM's gap is the largest at $13 per hour, followed by Ford at $11 and Fiat Chrysler at $5, according to figures from the Center for Automotive Research.
ā Union members have great health insurance plans and workers pay about 4% of the cost. Employees at large firms nationwide pay about 34%, according to the Kaiser Family Foundation. The automakers would like to cut costs.
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DETROIT (AP) ā Leaders of the United Auto Workers union have extended contracts with Ford and Fiat Chrysler indefinitely, but the pact with General Motors is still set to expire Saturday night.
The move, plus a widening corruption investigation of union leadership, puts added pressure on bargainers for both sides as they approach the contract deadline and the union starts to make preparations for a strike.
The union has picked GM as the target company, meaning it is the focus of bargaining and would be the first company to face a walkout. GM's contract with the union is scheduled to expire at 11:59 p.m. Saturday.
It's possible that the four-year GM contract also could be extended or a deal could be reached, but it's more likely that 49,200 UAW members could walk out of GM plants as early as Sunday because union and company demands are so far apart.
Picket line schedules already have been posted near the entrance to one local UAW office in Detroit.
Art Wheaton, an auto industry expert at the Worker Institute at Cornell University, expects the GM contract to be extended for a time, but he says the gulf between both sides is wide.
"GM is looking through the windshield ahead, and it looks like nothing but land mines," he said, citing a possible recession, trade disputes and the expense of developing electric and autonomous vehicles. "I think there's really going to be a big problem down the road in matching the expectations of the union and the willingness of General Motors to be able to give the membership what it wants."
Plant-level union leaders from all over the country will be in Detroit on Sunday to talk about the next steps, and after that, the union likely will make an announcement.
But leaders are likely to face questions about an expanding federal corruption probe that snared a top official on Thursday. Vance Pearson, head of a regional office based near St. Louis, was charged with corruption in an alleged scheme to embezzle union money and spend cash on premium booze, golf clubs, cigars and swanky stays in California. It's the same region that UAW President Gary Jones led before taking the union's top office last year.
Jones and other union executives met privately at a hotel at Detroit Metropolitan Airport on Friday. After the meeting broke up, Jones' driver and others physically blocked an Associated Press reporter from trying to approach him to ask questions. Jones has not been charged in the case.
Union spokesman Brian Rothenberg said Friday night that Jones remains in office, as does Pearson. "They didn't make any changes," he said.
In a 40-page criminal complaint, the government alleged that over $600,000 in UAW money was spent by union officials at businesses in the Palm Beach, California, area, including at restaurants, a golf resort, cigar shop and rental properties, between 2014 and 2017.
The union said the government has misconstrued facts and said the allegations are not proof of wrongdoing. "Regardless, we will not let this distract us from the critical negotiations under way with GM to gain better wages and benefits," Rothenberg said.
At UAW Local 22 in Detroit, picket line schedules for three days were posted on the lobby windows. The local represents workers at a plant that straddles the border between Detroit and the hamlet of Hamtramck.
The 24-hour schedules don't list any date to start but a separate schedule has a group reporting to the union hall at 6 a.m. on Sunday. The factory, which makes the Chevrolet Impala and Cadillac CT6, is one of four that GM plans to close.
Here are the main areas of disagreement:
ā GM is making big money, $8 billion last year alone, and workers want a bigger slice. The union wants annual pay raises to guard against an economic downturn, but the company wants to pay lump sums tied to earnings. Automakers don't want higher fixed costs.
ā The union also wants new products for four factories GM wants to close. The factory plans have irked some workers, although most those who were laid off will get jobs at other GM factories. GM currently has too much U.S. factory capacity.
ā The companies want to close the labor cost gap with workers at plants run by foreign automakers. GM's gap is the largest at $13 per hour, followed by Ford at $11 and Fiat Chrysler at $5, according to figures from the Center for Automotive Research, an industry think tank. GM pays $63 per hour in wages and benefits compared with $50 at the foreign-owned factories.
ā Union members have great health insurance plans but workers pay about 4% of the cost. Employees of large firms nationwide pay about 34%, according to the Kaiser Family Foundation. The companies would like to cut costs.
If there is a strike, it would be the union's first since a short one against GM in 2007.
The union may have to strike at least for a while to show workers that it got as much from the company as it could, Wheaton said. Some workers, he said, mistrust union leaders due to the corruption scandal.
Negotiators are usually tight-lipped about the talks, but a week ago, UAW Vice President Terry Dittes wrote in a letter to local union leaders that GM has been slow to respond to union proposals. GM answered in a letter sent to factories that said it is moving as quickly as it can.
"We are working hard to understand and respond to UAW proposals and we have offered to meet as often as needed," the letter said.