By on September 15, 2019

Hours after a four-year contract between the United Automobile Workers and General Motors expired without an extension, the union voted to kick off a nationwide strike against the automaker at 11:59 pm Sunday. The move would leave plants darkened and upwards of 49,000 auto workers on the picket line.

In a letter to members, UAW leadership said that while “some progress” has been made in its negotiations with GM, numerous outstanding issues remain — among them, wages, health benefits, temporary employees, job security, and profit sharing.

Given a number of looming or already completed plant closures announced by GM last fall, the union picked the automaker as its first bargaining target. UAW bargaining units for Ford and Fiat Chrysler opted to extend their deadlines.

Following a meeting of the UAW’s national council Sunday morning, the union issued the following statement to Automotive News:

UAW helped rebuild General Motors when they were near extinction, now they’ve reached record level profits. If GM refuses to give even an inch to help hard-working UAW members and their families then we’ll see them on the picket lines tonight.

Late Saturday, after the union decided to proceed without a contract pending a decision from council, UAW Vice President Terry Dittes stated, “While we are fighting for better wages, affordable quality health care, and job security, GM refuses to put hard-working Americans ahead of their record profits of $35 billion in North America over the last three years. We are united in our efforts to get an agreement our members and their families deserve.”

At the same time, GM issued the following:

We continue to work hard on solutions to some very difficult challenges. We are prepared to negotiate around the clock because there are thousands of GM families and their communities – and many thousands more at our dealerships and suppliers – counting on us for their livelihood. Our goal remains on building a strong future for our employees and our business.

The strike vote comes in the midst of a broad streamlining effort on the part of GM, which hopes to cut its capital spending by $1.5 billion per year. Last November, the automaker announced a 25-percent reduction of its executive ranks and the mothballing of five North American plants — four of them located in the United States. With this announcement came a death sentence for the Chevrolet Cruze, Volt, and Impala, the Buick LaCrosse, and the Cadillac CT6, as well as an uprooting of many Midwestern lives.

A nationwide strike would put the brakes on production of GM’s most profitable models: full-size and heavy-duty trucks. In 2007, the last time UAW workers walked out of GM plants, the automaker incurred losses of $300 million per day, CNBC reports.

In a press conference held Sunday morning in Detroit, Dittes called the strike action a “last resort,” with a union spokesman claiming that more than 200 local union leaders voted unanimously for the measure.

[Image: General Motors]

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103 Comments on “With No Deal Reached, UAW Votes for Midnight Strike Against GM...”


  • avatar
    thelaine

    Maybe the US taxpayers should give the union another 20 billion dollar pension bailout. Still waiting for reimbursement for that one. Thanks, UAW. Best of luck.

    • 0 avatar
      islander800

      Nice. Bash auto workers.

      How’s that reimbursement of a TRILLION dollars for bailing out the banks and Wall Street going -as THEY show record profits and “valuations”?

      I think the workers deserve some respect for their efforts – and in America, respect is shown with PAY.

      • 0 avatar
        mason

        Yeah. Keep pushing for more when your already at the top of the global food chain. GM figured out a long time ago it doesn’t take a skilled individual to work an assembly line. But go ahead and keep pushing for unreasonable requests, and GM and company will continue closing shop until there’s nothing left.

      • 0 avatar
        MBella

        Two wrongs don’t make a right. You can be against both. I sure am. The way the FED handles the banking industry (as well as most other central banks) has made banking work completely backwards. Savings is supposed to fund the banks in exchange for interest. Then they’re supposed to lend that money out at a slightly higher rate of interest. Now central banks are financing lending almost exclusively, and savers have been decimated.

      • 0 avatar
        thelaine

        ALL of the money used to bail out “wall street” was repaid with interest. NONE of the money given to the UAW pension fund was repaid. Do you see the difference? The difference is 20 billion dollars in taxpayer money, swallowed whole and digested by the UAW. What the taxpayers got was what comes out after food digests.

  • avatar
    honda1

    Screw you UAW, nothing buy a bunch of crooks.

    • 0 avatar
      EBFlex

      Exactly. Complete fraud of an organization run by criminals.

      And they have the audacity to strike. Everyone striking should be fired. Get people in there that want to work.

      Do these morons think GM is there to just give them money regardless of profit? What a bunch of entitled adult children.

  • avatar
    REAL_sluggo

    “Industrial Action” or a “strike” is an Adult temper tantrum. Find another employer to work for; or start your own Motor Company. YOU have choices – exercise them

    • 0 avatar
      dwford

      I don’t have a problem with workers organizing to make their workplace better, but at a certain point people lose touch with reality, and don’t realize how good they actually have it. Aside from offshoring, I fail to understand what the UAW has to complain about.

    • 0 avatar
      dantes_inferno

      Note to self: Do not buy a GM vehicle built by disgruntled auto workers.

      • 0 avatar
        mikey

        -dante_inferno….So tell us …Would you have bought a GM vehicle had the UAW not gone on strike ?

      • 0 avatar
        dukeisduke

        After having owned a Cruze for awhile, I wouldn’t buy one built by happy auto workers.

        • 0 avatar
          mikey

          @dukeisduke….Fair enough.. You would be one of the few that understand just how little impact the individual assembler has on the final product.

          • 0 avatar
            Lorenzo

            GM assemblers and engineers must be the most maligned professionals in the country.

            The engineers put out quality designs and look on in dismay as the beancounters substitute cheaper parts and less durable materials, but get blamed for what are viewed as lousy designs.

            The assemblers get blamed for shoddy construction when the often ill-fitting cheap parts break and the less durable materials wear out prematurely.

            The beancounters are anonymous, as are the low-level executives under pressure to lower costs just a little bit more.

            They’ve been getting away with it for decades, from save-a-buck engine mounts on 1965-71 V8s, to not quite good enough ignition switches, but the engineers and assemblers get the blame.

            It’s amazing how long this has been going on.

        • 0 avatar
          Robotdawn

          Ahhh, maybe that’s why I’m so happy with my Cruze, it’s built in Mexico!

          • 0 avatar
            threeer

            Robot…either that is some first-class level sarcasm, or you had your Cruze built on a day when everybody was happy down south. I owned a 2017 Cruze for about a year before I dumped it after numerous major issues (electrical and mechanical). Least reliable car I’ve owned in a long, long time and made me miss my Gen 1 Cruze.

  • avatar
    Vulpine

    Back in the ’60s, UAW strikes were almost commonplace. While I didn’t understand them at the time, I was told by my father that the automakers actually welcomed the strikes, giving them time to perform maintenance using wildcatters (or whatever they called those workers who ignored the strike) as well as saving money from not having to pay the exorbitant wages the union had forced upon those companies. (The union has to make up the salaries from all the fees paid to the union over the years.) I don’t know how true that is, but if it is even marginally true, then GM isn’t likely to cave just on the threat of a strike.

    That said, I will be watching this tonight and over the next few days/weeks to see the results. Personally, I don’t believe GM intends to re-open those shut-down plants any time soon and may even stick to their planned schedule to shut down the fourth plant… at least until it or they can be reconfigured for a completely different class of vehicle from what they have been building. The old phrase of “Rob Peter to pay Paul” may come into play, literally locking out workers and using the money to design for and build BEVs that will be more appealing than the current Chevy Bolt.

    • 0 avatar
      Lorenzo

      The union pays strikers $250 a week out of their strike fund. The average assembly line worker makes about $800 a week. I read that GM loses $400 million a week during a strike. If true, neither side can hold out for very long. BTW, GM released some of the details of their offer, apparently trying to persuade members directly.

      • 0 avatar
        Vulpine

        @Lorenzo: I’m not surprised at either revelation but I admit to puzzlement on the “loses $400Million per week.” Is this actual loss of existing funds or is this lost revenue, which would mean next to nothing considering expenses would drop similarly (though admittedly not fully balanced?) GM obviously wouldn’t be paying wages during the strike period and the production lines would be idled–at least temporarily.

        That is, they would be unless salaried workers could move onto the assembly line to operate at reduced speed, something they supposedly did during the ’60s. (Remember, I was being told this by my father, who didn’t work for any automakers after he served in WWII of which I am aware.) What I am aware of is that with each strike back then, within the next year or two the cars tended to show notable changes in appearance and power–as though the plants used the time to at least start a re-tool for the next generation. Coincidental, perhaps, but enough to catch a kid’s eye when cars were changing so drastically in appearance during the ’55-’75 period.

        • 0 avatar
          Lorenzo

          That’s what I read elsewhere, and I have to assume that’s fixed overhead expenses that still have to be paid, and can’t be charged to new shipments to dealers. Surely you don’t think Mary Barra will go without a paycheck, along with GM’s silver silos non-union (or non-striking) executive/clerical workforce.

          I may be wrong, but I assume much, if not most, of the unsold inventory is on dealer lots, already paid for. Dealers, not GM, get the revenue as they run down the inventory, and pay the bank that financed the floorplan inventory.

          • 0 avatar
            Vulpine

            Hmmm… Possible. I wasn’t aware that dealerships actually buy the vehicles that much and may be exactly why I couldn’t get a dealer swap for the exact 2018 Colorado I wanted that was sitting 150 miles away (I ended up ordering a 2019 instead.) The dealer at the other end refused to even respond to swap requests.

  • avatar
    thejohnnycanuck

    Actually of all 3 ‘domestic’ OEM CEOs the person I’d least like to butt heads with is Mary Barra.

    In the meantime if there is a strike head over to your local GM store and take a look at that new Blazer. Their factory in Ramos Arizpe will be up and running at full speed no matter how this all turns out.

  • avatar
    28-Cars-Later

    I’m not sure what’s going to happen here but I read a comment on another site which claimed this has been lurking for a while so dealers stocked up and GM itself already has an overcapacity issue and can afford to wait it out for a period. According to the poster, the time to do this was two or three years ago as GM is forecasting a soft 2020 and ultimately the UAW will win at best a Pyrrhic victory.

    I would not be surprised if the ripple effect from this is GM moves even more operations overseas citing whatever financial damage they do sustain as reason.

  • avatar

    Reuther would shut them down until all plants were reopened and everyone was Tier One. the days of Solidarity ended.

  • avatar
    SCE to AUX

    Even if the union got everything else, it will never get job security.

  • avatar
    Steve203

    Doesn’t surprise me at all. GM hasn’t exactly endowed itself with a lot of goodwill from the workers, what with their poor product planning losing the company whacking big chunks of market share, which cost workers their jobs, and offshoring a lot of what’s left. GM now has fewer UAW members than either Ford or FCA.

  • avatar
    Jerome10

    Whichever side you take on union thinking…. the economic reality in the USA today has more or less sucked all bargaining power out of the unions.

    If you can move to Mexico or China or Hungary or Brazil and build vehicles and components for $4/hr vs what, $15-$30 in the USA, and ship them to the USA for less in shipping+tariffs vs the difference in wages (and it appears you can at this time)…. then unions are essentially striking to have the jobs moved entirely out of the USA or they’re striking to have their wages at parity with wages+shipping+tariffs vs elsewhere in the world.

    Whatever you think of this, this is the economic reality, and until and unless that changes, unions and union workers are fighting a losing battle.

    I frankly can’t see how this ends well for unions and their workers.

  • avatar
    ajla

    Not to start a wildfire, but I have a feeling Trump will tweet in support of the striking workers this week and everyone’s heads will explode.

    • 0 avatar
      28-Cars-Later

      I spoke with some union electricians yesterday at a public event, evidently the official line is [insert Demoncrat here] but the true consensus is about 50/50 in support of the President. Never thought that could happen.

      • 0 avatar

        The new Democratic party has no interest in working Americans. If you were a cross dressing transgender worker maybe they would then care.

        • 0 avatar
          28-Cars-Later

          Yet the union still can’t see that.

        • 0 avatar
          dal20402

          Let me remind you that the Republicans have gone to the mat for only one thing in Trump’s entire sordid tenure—a tax cut that got workers a few pennies (provided they weren’t in CA, NY, or NJ) and delivered the overwhelming bulk of its benefits to not even the top 1% but the top 0.01%.

          If you think Republicans are interested in the welfare of workers, you’re on some good sh!t.

          • 0 avatar
            Snooder

            This.

            It’s hilarious seeing Union guys act like the Republican Party suddenly has their interests at heart.

            I mean, for ducks sake, Trump’s claim to fame is literally for yelling “You’re Fired”.

          • 0 avatar
            Steve203

            >>It’s hilarious seeing Union guys act like the Republican Party suddenly has their interests at heart.<<

            Folks not in the metro Detroit area may not have been hearing about the corruption issues at the UAW.

            Some time ago, several UAW honchos were charged and convicted for taking bribes from FCA honchos. The FCA honchos went to prison too.

            Now, the local news has been full of FBI raids on the home of the head of the UAW and several other UAW officials that represent GM workers. But I have yet to see anything in the news about investigation of the GM officials the supposedly corrupt UAW people worked with.

            So, with the contract situation, is this a coordinated effort between GM and the Federal government to discredit the union? Most of the people who voted for the POTUS hate unions anyway, so breaking the union, the way Reagan broke the air traffic controller union, wouldn't cost a significant number of votes.

            Mary Barra met with Trump on Sept 5. What were they talking about? Neither is saying. The meeting was only a couple days after GM was named as the strike target, and a week after the homes of the UAW President and several others were raided.

          • 0 avatar
            ajla

            Right now Barra has been openly against the tariffs and the CAFE rollback. I don’t think Trump would go along with her desires unless she is publicly willing to kiss the ring and I have doubts she’d do that.

            I think the president will support the UAW partly for the “America first, no foreign outsourcing” populist message, partly as revenge against Barra, and partly in expectation of getting thanks from the UAW leadership.

            Electorally, I don’t think it will hurt his standing much with his current supporters and it might help him with the blue collar people in states critical to his re-election.

            We’ll see what happens. Maybe the strike will only last a few hours again and there will be minimal political fallout.

          • 0 avatar
            Lorenzo

            I got $900 back in that tax cut. The “workers got pennies” argument is from politicians running for president. What else are they going to say?

          • 0 avatar

            Clinton signed NAFTA, which is partly responsible for this strike. I have a friend that works at a GM plant, and at his home the Clinton’s name is not allowed to be mentioned. These are the union workers that got Trump elected despite all his flaws.

          • 0 avatar
            dal20402

            I obviously don’t know how much you make, but if you are in any sort of normal “worker” category then $900 is probably between 0.5% and 2% of your income.

            If you were fortunate enough to have an income in the tens of millions, your mileage obviously may vary depending on your sources of income, but it’s reasonably likely that the Trump bill would have got you 10% or more of your income.

            But keep on enjoying those pennies.

            (For the record, as a blue-state professional with a high but not 1% income, I actually experienced a tax increase under the Trump bill, thanks to the limitation on SALT deductions.)

          • 0 avatar
            dukeisduke

            In some ways he’s a Republican, in some ways he’s not. There’s quite a bit of populist in him.

        • 0 avatar
          Lorenzo

          Manufacturing has been shrinking in a service economy, and the AFL-CIO just can’t bring the donations anymore. Government is expanding, and their unions are now the golden goose. Politicians can increase government workers’ pay, and since union dues are a percentage, available donation amounts increase too. The taxpayer gets the bill.

    • 0 avatar
      redgolf

      Loved this – “Not to start a wildfire, but I have a feeling Trump will tweet in support of the striking workers this week and everyone’s heads will explode.” I personally believe it will be settled quick with Lordstown getting the promise of an EV, the transmission jobs are gone, time to retire or relocate!

      • 0 avatar
        Lorenzo

        Trump says a lot of things he doesn’t mean, just to tweak Democrats. If there’s any advantage in it, he might just do that. There are a lot of things he isn’t but one thing he is, is a master baiter (sorry).

  • avatar

    Mary Barra created this whole strike scenario on her own. First, she listened to the short sellers on wall street and cancelled perfectly good selling cars like the Cruze and Impala. Barra them invested inordinate sums of money on risky and unproven autonomous car technology. Company money would have been more wisely spent on improving GM quality, especially in the area of interior design. Barra has even thrown the future of GM two best cars the Camaro and CT6-V into question. Maybe Barra can’t be completely blamed since wall street put tremendous pressure on her. Mary Barra sold out to wall street and now a serious price is about to be paid. We are probably talking about a 4 week long strike.

    • 0 avatar
      28-Cars-Later

      There may be an element of the Art of War being exhibited on the part of Barra. GM has an overcapacity issue so they close plants, and even with those closures they still have an overcapacity issue. They allow the strike to occur for a projected time allowing for an accepted number of financial losses. The White House will get involved, which normally has never happened, and a deal will be struck probably for some of what UAW wants (i.e. wages) but the temp worker thing doesn’t get approved and GM won’t agree to anything which forces them to keep plants open (like the Oshawa deal). GM uses the accepted losses as pretext to move even more production overseas and depending on what 2021 looks like closes even more facilities or shifts. UAW for the 2019 short term looks good, but over time loses because the amount of facilities will continue to shrink.

      • 0 avatar
        redgolf

        “UAW for the 2019 short term looks good, but over time loses because the amount of facilities will continue to shrink.” Because EV’s take less parts and less workers to assemble those parts – forward to the next contract, 2023?

        • 0 avatar
          28-Cars-Later

          That’s a great additional point.

        • 0 avatar

          GM foray into EV vehicles is another strategic Barra error. GM has an awful history with EV vehicles. In fact the Bolt is GM’s slowest selling passenger vehicle. GM only sells 20,000 of the them a year. GM would sell more Cruzes in a year than 4 years of GM EV sales. In five years GM’s autonomous division will close representing on the biggest waste of resources in the company’s history.

        • 0 avatar
          Lorenzo

          The UAW has already lost over two-thirds of its workforce to automation, since the 1950s. Electric cars aren’t needed to reduce union employment even more. They’ll get creative, like McDonald’s. I never thought they could automate out pimply-faced teens asking “you want fries with that?”, but they’re doing it!

      • 0 avatar

        I think this will be Barra’s Waterloo. She had lost support from the UAW, Democrats, and Republicans. GM has probably become America’s most disliked car company.

        • 0 avatar
          ToolGuy

        • 0 avatar
          Lorenzo

          Don’t forget she’s negotiating for Ford and FCA – they’ll be stuck with the pattern contract that comes out of this strike. I wouldn’t be surprised if there wasn’t some low-level data transfer going on between them. It would have to be just low-level enough, and indirect enough, to avoid collusion charges, but give each of the Big Three a general idea what’s acceptable, should they be picked as the target.

          I found it interesting that GM mentioned its offer included not just pay raises and benefits, but the possibility of converting the two recently closed plants to electric car assembly, and adding several thousand new jobs.

          The fact that FCA announced it was continuing to spend billions on plant and equipment and also mentioned several thousand new jobs dovetailed nicely with what GM said it’s offer included. Or was that just a coincidence?

      • 0 avatar
        mikey

        -28… The”Oshawa deal” …may save 400-450 jobs ? The logistics of trying to replace the stamping plant, with out impacting US/Canada production just could not be done ..At this time ???

        Maybe ..just maybe ??? the Flex plant has a glimmer of hope. Personally I see Flex idled for at least 2 years maybe more.

        • 0 avatar
          28-Cars-Later

          Not sure, it may have simply been a back door agreement between your gov’t, your union, and GM or some such. Since GM’s goal is plant elimination I don’t expect such future deals even if the amount of jobs is not an issue.

    • 0 avatar
      Greg Hamilton

      Instead of investing in new product Mary Barra and her board bought 10 billion dollars worth of GM stock. Imagine what innovative products GM could have had for that sum. That stock buyback also boosted her compensation. Wolfstreet had an excellent article on that subject.

  • avatar
    ToolGuy

    It’s 9PM now against a midnight deadline – does this strike actually happen, or is the unanimous strike vote theater?

  • avatar

    The positive part of the strike is that less crappy Sierra 150s will be produced. What is that vile truck at the top of the page.

    What a disgrace!

    • 0 avatar
      redgolf

      you must mean Ford F 150’s

      • 0 avatar
        mikey

        @ redgolf…As I recall you’re a retired GM hourly gypsy ? I’ve been GM hourly retired since 2008.

        I had 4 year affair with a Ford Mustang ..The first three were wonderful. Year four was a nightmare . 2 days waiting days for a rear brake job !!! Then I got hit with a bill that would take your breath away .

        I fixed the problem by trading it in on an Impala ..The GM dealer parked my Mustang on the used car lot beside four late model F 150 ‘s

        I kept my 2005 Mustang, rag top . However if the right deal was to come by ??? I could turn it into a Camaro..?

        No more Fords for this old GM boy !!

      • 0 avatar
        dukeisduke

        @redgolf Did you work at Southgate? When did you start? I once owned a ’68 Bonneville 4-door sedan (4-door sedan was a mid-year introduction, mine was one of 3,499 built for ’68). I think mine was built in February. VIN had plant code “C” for Southgate.

    • 0 avatar
      mikey

      The majority of trucks are assembled in Mexico. Parts shortages will have them down by Tuesday.

  • avatar
    Jeff S

    I have seen very few 2020 Silverados and Sierras on the road, the dealers must have an oversupply of them. GM really messed up on their full size trucks. Dealers might be happy to not get any additional inventory since these trucks are not selling as expected. As for the Impala GM might be just as happy to have that plant shutdown since that model is on the chopping block. Whatever the outcome of this strike the one thing that will happen is GM will send more production overseas. I would be surprised if GM reopens any of the four plants it has closed in the US.

    • 0 avatar
      dukeisduke

      I’ve been seeing more and more of the new Silverados and Sierras. The Swiss Army tailgate option on the Sierra seems to be driving sales – I’m seeing quite a few of those.

  • avatar
    Jeff S

    That vile truck at the top of the page is Chevrolet version of today’s Edsel.

  • avatar

    There is no love for GM anywhere these days.

  • avatar
    mikey

    @ redgolf….I’ve been hanging around TTAC for 15 years or so ..Trust me brother, you’re not going to see a lot of GM love here.

    In solidarity …Mike

    • 0 avatar
      DenverMike

      I’m sure the feeling is mutual. And since when does GM think of anyone besides itself? Except 15 years ago they were different corporate criminals.

    • 0 avatar
      Hummer

      I’ve been a GM supporter for a long time, the last 10 years since bankruptcy have been a downward spiral of interesting products. I consider my Holden derives SS one of the last products GM has produced that meets my most basic needs while being priced fairly.

      The Suburban and Tahoe are still good, but I already know that those are being killed off in the next iteration to be replaced by a highly neutered vehicle.

      So my negativity for GM is that they have actively worked to sour someone who has spent more on their products in the 18 years since I graduated college than most spend in their life for all of their cars combined. What kind of business model shuns the products that brings consumers in the dealerships for a product lineup consisting of 15 flavors of soulless minivans?

  • avatar
    dukeisduke

    Who will notice?

  • avatar
    DenverMike

    What’s the big deal? Just build them all in Mexico of Chinesium and problem solved!

  • avatar
    tomLU86

    GM Oshawa was a good plant.

    $10 billion in stock buybacks…

    The workers (and salaried manufacturing people than manage them) don’t design, engineer, and market the cars. They only build them.

    If it makes more sense for GM to use Mexican/Chinese labor because it’s cheaper, perhaps the board should hire Asian managers–after all, they cost less too–a LOT less. But that would rock the boat–the cozy, incestuous relationship of Board Directors & CEOs that is so enriching to them…

    Perhaps I’m naïve, but if GM wasn’t fixated on pinching pennies to try to attain profit margins that are not realistic for a company with a large foot-print in the developed world (vs China/Mexico slave wages), their products would be more appealing, and revenues would be higher, and profits would be LARGER (overall, albeit smaller margins).

    For example, let’s look at the new (God-awfully named) CT4. My biggest dislike about the ATS is finally fixed! The speedometer cluster looks 10x better, and overall, the interior looks better in TTAC pics. That’s good.

    But there is some bad. The old turbo four had more power. The new one is weaker. I hope it at least sounds better. No manual trans.

    The optics are not good. Given the whiff of UAW corruption (I’m sure the kickbacks to FCA, and now possibly GM, UAW leaders didn’t compromise their judgement, lol) and GM’s large profits and exec compensation, and closing US plants, to justify it’s existence, the UAW has to strike, if only to make some noise. In the end, what’s on the table now will be very close to what is agreed.

  • avatar
    dukeisduke

    Where’s DeadWeight when you need him? :-)

  • avatar

    There are so many issues on the table that I would not be surprised by a 30 day strike. I know one thing it will go far beyond the 2007 strike, which was just a few days. GM does not want a repeat of the 1974 strike.

  • avatar

    Day two begins……………..


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