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General Motors announced its offer to United Auto Workers "build a stronger future for all" but the more than 50,000 striking members want more after leaving Sunday night.
"We have submitted a firm offer that improves wages, benefits and increases the number of jobs in the US It is disappointing that the UAW leadership has chosen to strike at midnight tonight. ", said GM in a statement. "We have negotiated in good faith and with a sense of urgency and our goal is to build a strong future for our employees and our company."
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Talks between the union and GM were tense from the start, largely due to plans to close four US factories, including one at the Detroit border with the Hamtramck and Lordstown enclave in Ohio .
"The UAW helped rebuild General Motors when they were about to disappear and they have now achieved record profits," the union said in a statement.
What GM offers:
Here are the main areas of disagreement:
- GM is making a lot of money, $ 8 billion just last year, and workers want a bigger share. The union wants annual wage increases to protect itself from the economic downturn, but the company wants to pay lump sums related to revenues. Automakers do not want higher fixed costs.
- The union also wants new products to be closed for the four plants. GM currently has too much production capacity in the United States, especially for the construction of slower-selling cars.
- Companies want to fill the cost gap of the workforce with factory workers run by foreign builders. GM pays $ 63 an hour in wages and benefits, compared with $ 50 in foreign-owned plants. GM's gap is the largest at $ 13 an hour, according to figures from the Center for Automotive Research.
- Union members benefit from excellent health insurance plans and workers pay about 4% of the cost. Employees of major companies in the country pay about 34 percent, according to the Kaiser Family Foundation. Automakers would like to reduce costs.
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Associated Press contributed to this article.
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