General Motors strike unlikely to be resolved soon: experts



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On this agreement, General Motors and United Auto Workers agree: the strike that drew 50,000 workers Monday on the picket lines should not end so soon.

The two sides are discussing, but they are preparing for a long and costly fight as workers fight for better wages, health care benefits and job security, union representatives and officials said. experts in the automotive sector.

"This will last as long as it will take to reach our negotiating goals," said Chuck Browning, director of UAW Region 1A, at MSNBC. "In the end, this company has been extremely profitable for a long time. These profits were made through the sweat and hard work of our members, and our members want a fair deal. "

In a brief statement on its website, GM said "negotiations have resumed".

"Our goal remains to reach an agreement that builds a strong future for our employees and our company," he said.

Erik Gordon, a professor of economics at the University of Michigan and a leading expert on the automotive industry, said the UAW leadership should take a stand against GM, not just for the base but for his own survival.

UAW President, Gary Jones, and other top union officials are currently under investigation by federal authorities for embezzling dues and spending thousands of dollars, ranging from whimsical vacations and golfing equipment to bottles of 400 dollars of Louis Roederer Cristal champagne.

"I think the union leadership wanted a strike because it's under attack, and when you feel you could lose your grip on power, the ancestral tactic is to go to war," Gordon said.

And because they must be seen as a harsh stance on GM's management, union negotiators will not look for a quick fix, even if ordinary employees will begin to feel the financial hardship almost immediately.

The workers will receive strike pay of $ 250 per week, which is much less than the last production wage of $ 30 per hour or $ 1,200 per week, he said.

"The union leadership can not look at its members as if they have surrendered. It must sound like a very difficult battle, "Gordon said. "The leaders do not want it to be settled tonight. … leaders need a really bitter battle to show that they are hard-pressed to fight for their members. "

Union spokesman Brian Rothenberg disagreed unequivocally.

"The UAW Board of Directors, made up of local leaders, unanimously voted to go on strike for issues that affect their lives," he said. . "This problem concerns their salary, their benefits, the safety of their workers, their health care and their quality of life. All that is said to be contrary is insulting to the members who strike and sacrifice for their future and that of their families. "

Kristin Dziczek, of the Center for Automotive Research, said that the corruption scandal that has trapped the UAW leaders "undermines the trust between management and members." , has agreed to make painful concessions to help ensure the survival of General Motors in trouble.

"They gave up the holidays, made concessions on wages and other things to save the company," Dziczek said about the UAW. "Since then, there have been 10 very profitable years. It is difficult for society to advocate for poverty because it makes good profits. "

GM, the largest US automaker, made $ 27.5 billion in profits over the last four years of the current contract.

But the uncertainty facing the auto industry is why the UAW is trying to get the best deal possible for the workers now – and the reason GM is resisting.

"The union members want guarantees and security, and the company does not want to be locked," Dziczek said.

In Washington, President Donald Trump said he hoped the General Motors strike would be brief.

"I have an excellent relationship with the auto workers," he said. "Auto workers get a huge number of votes. I do not want General Motors to build factories abroad. As you know, they build many factories in China and Mexico. "

But Mr Dziczek said that Mr Trump had worsened the industry's uncertainty by reducing the fuel economy standards set by the Obama administration and threatening to impose rights of way. Customs may significantly increase the cost of buying a new car.

"There is uncertainty on all fronts," said Dziczek.

The strike began after Terry Dittes, the vice-president of the UAW, alerted union members that the negotiators had not been able to agree on wages, health, temporary workers, job security and profit sharing.

"It's about defending the interests of us, affected families and communities, because it's not just about our members," Dittes told NBC News. "It's a bigger picture."

"Although the company has an obligation to structure its activities as it sees fit," he added, "we have an obligation to represent our members. It's now our time. "

GM described the UAW's decision to leave work as "disappointing", saying in a statement that it had made a "fair offer" including "the best wages" and "leading health care National level".

Gordon said that what workers want above all else is the security of the job.

"That's what they're negotiating for," he said. "Of course, they want more pay. But what they really want is the assurance that their jobs will always be there. "

Thousands of GM workers have landed pink slips in recent months as the company has shut down assembly plants and component factories as part of a restructuring.

Workers know that, Gordon added, there will likely be more difficulties, as all economic forecasts point to a slowdown in auto sales.

"They saw what happened when the Lordstown plant was shut down," said Gordon, referring to the extent of Ohio's genetically modified plant that closed in March after 50 years of production. "Many workers fear to be the next Lordstown."

The UAW strike fund accounts for more than $ 721 million, the Detroit News reported. The newspaper estimated that the union would "burn" $ 11.5 million of these funds each week on strike, a figure that does not include the cost of health care benefits.

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