Chances are youโve at least heard the United Auto Workers Union were preparing to strike if they failed to reach a labor agreement with the automaker, General Motors. That deadline came and went Sunday night and workers started walking out on Monday morning.
The Heartbeat of Americaโs Automotive Workforce
Currently, nearly 50,000 UAW members are not working, affecting some 55 GM facilities (33 manufacturing plants, 22 parts warehouses) and marking the first stop work action for the union in 12 years. The heart of the unionโs decision to strike centers very closely around financial impacts to the workers. Hereโs what they are demanding:
- Fair wages
- Affordable healthcare
- Profit share
- Job security
For GMโs side, theyโre saying they have already put back more than $7 billion into the US economy, added 5400 jobs, and negotiated in good faith to present a โstrong offerโ to the union.
According to GM, that offer includes a ratification payment of $8,000 along with health insurance that includes autism therapy, chiropractic care, and allergy testing.
Do the Workers Get Paid During a Strike?
Striking workers will not be paid by GM while the strike is taking place. However, if the strike lasts longer than a week, members will receive $250 per week in strike pay from the union.
Even if union members feel the financial pinch during this strike, crossing the picket line and going back to work might not be so easy. Many unions have steep fines for members who work in spite of strike orders. Those fines are enforceable in court.
While union members have the right to resign at any time, including during a strike, unions have the right to revoke their reinstatement or force them to pay heavy fines to get back in.
Teamsters Also Make Their Voice Heard
In addition to the GM workerโs striking, members of the International Brotherhood of Teamsters that deliver GM vehicles to dealerships are also refusing to transport them during the strike.
According to Teamstersโ General President Jim Hoffa, their โdecadesโlong relationship of having each otherโs backsโ compels them to stand alongside the union.
Whatโs Next?
Ford and Fiat Chrysler negotiations are currently underway and many auto industry experts are closely watching how things unfold in this case as an indicator of what to expect. For the time being, the UAW is extending its contracts with both companies indefinitely while they work with GM.
The UAW and GM plan to resume negotiations in Detroit at 10:00 on Monday morning. There are no current indications of how long the strike may last.
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