By on May 15, 2008

30mblogo.jpgOn April 17, United Auto Workers (UAW) union members at GM's Delta Township plant walked out in a dispute over their local contract (two-tier terms and conditions). The action shut down production of two of GM's most popular products: the GMC Acadia and Buick Enclave (Saturn Outlook production also halted). After almost a month spent working its way through a dwindling dealer inventory, the Detroit News reports GM turned up the heat on Delta's striking workers. At midnight Wednesday, GM canceled their medical and life insurance benefits. As of 4:30 am today, the Local's web site is reporting a tentative agreement. (The site instructs picketers to continue "until further notice.") Whether GM will apply the same pressure at the Fairfax plant in Kansas– where Malibu production was halted by a similar strike– is unknown. 'Bu production continues at the Orion plant in Michigan, and there's a 34-day inventory on the lots. Still, between the strikes at American Axle and Alliance Interiors and negotiating the local contracts, GM's hardening line on "local disruptions" is both understandable and predictable. But will the UAW now toughen theirs? Count on it.

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9 Comments on “GM Plays Hardball With the UAW; Pyrrhic Victory?...”


  • avatar
    gamper

    I dont know if I would call it a Pyrrhic victory. GM would actually have to win first. Instead, I would call it GM doing something other than rolling over and taking it from the UAW. Bravo, now what the US automotive industry really needs is a lockout. Doesnt matter where, but I think a high profile, large scale lockout is the only thing that will finally and forever bring the UAW to its knees. In this economy, Worker’s would be reluctant to authorize a strike for quite some time following a successful lockout. C’mon American Axle, with the reduced demand for truck parts you are in a perfect position to lock out the workers, AAM probably wouldnt even need to hire scabs, just move production to Mexico and pick up where it left off. I can see it now, goodbye American Axle Manufacturing, hello Fabricación de árbol de México. I guess I can dream.

  • avatar
    menno

    I’d hate to see more jobs leave America but if the UAW simply can’t see beyond their nose, then it might happen.

  • avatar
    Airhen

    So the UAW has shut down two popular products. Nice idea, when it’s tough to sell large vehicles and there are so many other choices out there (including some fine non-union ones). Great timing! LOL

  • avatar
    N85523

    There are so many strikes at GM and GM suppliers right now that I can’t keep up with them. It would be nice if we could get a running database of all facilities and models affected.

  • avatar
    Stingray

    No, no es Fabricación de Arbol Mexico, es Fábrica de Ejes Mexico ;). This is the proper translation.

    Google translator is not always the best way to do it :)

  • avatar
    Bunter1

    It will be interesting to see if GMs quality scores reflect a cheerful work force on 2008 models.

  • avatar
    mlbrown

    Mexican tree manufacturing?

    -Matt

  • avatar
    Ralph SS

    Yeah, yeah, those silly UAW’ers. Fighting for what they have when da company can just replace dem. If they were worth anything they’d get real jobs like becoming an auto executive. Then they could just appoint board members who would make sure they get obscene salaries, big raises and golden parachutes no matter how the company they were responsible for did. But, no. They wallow around the shop floors trying to save there worthless pitiful jobs like they were important or something. Anyone can make a car. Just ask Chery. Or Tata. Yeah, dats right.

    Yeah, I can sit here at my desk being paid by someone who thinks I’m working when I’m actually typing witty slams about people and their jobs even though I’ve never walked in there shoes.

  • avatar
    CarShark

    Ralph SS:

    Whine all you want. That’s the way it is. They aren’t important. The UAW has no leverage. The CAW has even less than that. Now that GM’s finally grown a pair (it seems) any fight they do put up only makes it that much more likely that GM ships their jobs to someone else. For once, a bit of give might be what the UAW needs.

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