Only 12 years after the last strike that cost General Motors billions in revenue, the United Auto Workers, or UAW, once again went on strike against the auto company. Both sides have been working on negotiating a new contract. That was until GM decided they would break off contract talks on Sunday. As of midnight, nearly 50,000 GM workers who are part of the UAW hit the picket lines.
The UAW was attempting to negotiate for their workers to get a larger share of GM’s profits. They want an annual pay raise, but what GM was offering wasn’t enough according to the strikers. Union officials say both sides are nowhere near close enough to make a deal, so GM decided they would leave the negotiating table.
President Trump tweeted about the strike, stating: “Here we go again with General Motors and the United Auto Workers. Get together and make a deal!” Other politicians have also shown their support for the workers, especially 2020 presidential candidates Joe Biden, Elizabeth Warren, Pete Buttigieg, Julian Castro, and Bernie Sanders.
“The CEO of GM made nearly $22 million dollars last year—281 times the median GM worker. I stand with the 46,000 UAW members who have moved to strike, fighting for affordable health care and fair wages. GM can afford to do right by the,” Castro wrote on Twitter on Sunday.
GM’s “Generous” Offer
According to General Motors, they made a generous offer to the UAW. Not only did they claim to offer new products to be made in assembly plants scheduled to close, they also made a ‘strong offer’ that included a lot of great perks and benefits. Those perks and benefits include better wages, benefits, and they’ve even made a lot of improvements to plants in four different states.
GM tweeted on Sunday: “The offer we presented to the UAW prioritizes employees, communities and builds a stronger future for all. It includes improved wages and health care benefits, over $7B in U.S. investments and 5,400 jobs. Let’s come together and secure our shared future.”
As of right now, a deal looks far from being done. Nearly 50,000 UAW workers in more than 6 states have hit the picket lines. These states include Michigan, Kentucky, Ohio, Texas, and New York. But GM is in a good place right now. According to Cox Automotive, GM has 77-days’ worth of inventory, including cars, SUVs, and trucks. That means the workers are in for a long strike if they hope to convince GM to come back to the negotiating table.
“If a strike occurs, GM has enough inventory on the ground so as not to hinder sales in the short run. Strong sales in August helped trim overall industry inventories to the lowest level in three years, according to Cox Automotive data, but GM’s inventories remain healthy and even above industry average,” according to commentary from Cox.
