Skip navigation

GM workers strike to keep jobs in the U.S.


< Prev | 1 | 2
INTERACTIVE
Image: The Tata Nano
10 odd-looking foreign cars
From the Fiat 500 to the Tata Nano — these foreign cars leave us speechless.
  Latest interest rates
MortgageHome EquitySavingsAutoCredit Cards
See today's average mortgage rates across the country.
Loan typeToday+/-Last week
30-year fixed
4.97%
5.03%
15-year fixed
4.48%
4.53%
30-year fixed jumbo
5.89%
5.86%
5/1 ARM
4.24%
4.06%
7/1 ARM
4.34%
4.39%
See today's average home equity rates across the country.
Loan typeToday+/-Last week
$30K HELOC
5.22%
5.20%
$30K home equity loan
8.36%
8.33%
$75K home equity loan
8.25%
8.20%
$50K home equity loan
8.22%
8.17%
$50K HELOC
4.96%
4.93%
See today's savings rates across the country.
Savings typeToday+/-Last week
Money market
1.00%
1.04%
$10K money market
1.08%
1.12%
Six-month CD
1.09%
1.13%
One-year CD
1.57%
1.57%
Five-year CD
2.58%
2.60%
See today's average auto rates across the country.
Loan typeToday+/-Last week
48-month new car loan
6.79%
6.77%
36-month used car loan
7.15%
7.14%
36-month new car loan
6.67%
6.64%
60-month new car loan
6.83%
6.81%
72-month new car loan
6.12%
6.12%
See today's average credit card rates across the country.
Card typeFixedVariable
Standard13.46% 11.48%
Gold12.12% 9.90%
Platinum10.97% 12.21%
All12.31% 11.68%
  LIVE QUOTE
Quotes delayed 15+ min.

The strike will cost GM about 12,200 vehicles per day or 760 per hour, according to the auto forecasting firm CSM Worldwide of Northville.

If the walkout goes beyond 36 hours, CSM expects vehicle production in Canada to be affected because of a lack of U.S.-built engines and transmissions.

The walkout could further damage the image of the UAW, David Cole, chairman of the Center for Automotive Research in Ann Arbor, said shortly before the strike began.

Story continues below ↓
advertisement | your ad here

"What it says is the union is the same old militant organization," Cole said. "What is a real concern is buyers that punish a union by not buying the products they build."

Cole said the UAW leadership may need a strike to show members that it did all it could to get the best deal.

"They're in a bit of a box, in that they need some drama to get an affirmative vote on this," he said.

GM likely has threatened to pull investments out of the U.S. if the union does not agree to its terms, he said.

Gettelfinger, in his post-walkout news conference, said the union has done a lot to help the struggling GM, including health care givebacks in 2005. But during the weekend, he said GM's stance hardened.

"It was going to be General Motors' way at the expense of the workers," Gettelfinger said. "The company walked right up to the deadline like they really didn't care."

Gettelfinger said the union didn't want to strike.

"Who wins in a strike? But again, you can be pushed off a cliff, and that's what we feel like happened here," he said.

GM spokesman Dan Flores said the automaker was disappointed in the union's decision.

"The bargaining involves complex, difficult issues that affect the job security of our U.S. work force and the long-term viability of the company," he said. "We remain fully committed to working with the UAW to develop solutions together to address the competitive challenges facing GM."

GM shares fell 20 cents to $34.74 in trading Monday.

The last national strike against GM was in 1970 and lasted 69 days.

An agreement between GM and the UAW would become the pattern for pacts with Ford Motor Co. and Chrysler LLC.

The negotiations come at a difficult time for both the automakers and the union. Detroit's automakers lost a collective $15 billion last year.

The union also is feeling pressure. UAW membership has fallen from a high of 1.5 million active members in 1979 to around 576,000 today.

© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


< Prev | 1 | 2

Sponsored links

Scottrade: Trade Stocks
Open an Account Online Today! $7 Trades & Powerful Trading Tools.
www.scottrade.com

Resource guide