Different times

16 September 2019 By Antony Currie Follow @AntonyMCurrie

The $52 billion carmaker’s investors are pricing in a modest one-week earnings hit from union workers downing tools. It’s not like the old days: CEO Mary Barra gave in on key points before the UAW strike even began. That should bring members back to work within a few days.

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Shares in General Motors were down around 5% at 2:21 p.m. New York time on Sept. 16 after the United Auto Workers voted a day earlier for the 48,000 or so union members who work at the carmaker to go on strike. Negotiations continued on Sept. 16 as employees manned picket lines.

It is the first time the UAW has called on GM members to down tools since 2007. The decision was taken after the union’s previous contract had run out without a deal being struck.

The UAW wants GM to reverse a decision to close a factory in Ohio and another in Detroit, as well as a plan to increase members’ contribution to healthcare costs. The union also wants a bigger share of profit, more job security and a path to temporary workers getting permanent positions.

In a statement General Motors said it had on Sept. 14 offered to invest more than $7 billion in U.S. factories, create 5,400 new jobs, improve profit sharing, award wage or lump-sum increases in each of the four years the deal lasts, and make an $8,000 payment to each UAW member once a deal is ratified.

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