The factory workers have decided to go against General Motors and they have successfully completed their 29th day of the strike. There is a possibility that both sides have planned to sign an agreement. The negotiators last week had touched down on every topic that was concerned to be causing trouble. The key focus was to solve the issues as soon as possible. According to a former GM negotiator Art Schwartz, they do not plan to name-call for now and are waiting for the right moment. The General Motors Council was called to approve the agreement on October 14, 2019, but the talks only continued and no deal was reached.
The GM has accused the union of not reacting quickly to the offer and has thus urged them to speed up the negotiation. The council will have to update the contract or have new agendas included for being concluded. The release of half-truths by the company is the reason for causing a delay in the final agreement. The union had its strike pay increased from $25 to $275 per week. There are 49,000 workers participating in the strike and this has paralyzed GM’s U.S. factories. The union and GM are fighting over the vehicles being completely built in the US and to achieve this, GM has $9 Billion offered to the US factories and $7.7 Billion offered by the company along with $1.3 Billion from joint ventures. The wages and lump-sum payments are the problems for workers as 4% lump-sums with a 4-year contract and 3% hike in the second and fourth year are being practiced.
Likewise, the United Auto Workers’ have lately proposed a provisory deal with General Motors which includes the closure of 3 US plants. One of the major plants is the large assembly plant in Lordstown. Additionally, 2 of the powertrain operations in Michigan and Maryland will also be ending their production in November, but the Detroit automaker has negotiated for time. GM would also have its parts distribution facility in Fontana shut down. However, the company has confirmed that it will have a battery cell production put up in Mahoning Valley to increase jobs plus will have an $11,000 ratification bonus handed to the union members after the contract is signed. The temporary members will be provided $4,500 ratification bonuses.