UAW and GM Reach Tentative Agreement, End 12,000-Worker Strike

Strategic Insights -

Flint, Mich., workers at the Buick City complex, a key operation in assembly and parts supply for General Motors Corp. (GM), have ended their nearly 72-hour strike after the UAW and GM reached a tentative agreement. The strike, which threatened to shut down much of GM's North American operations, had affected seven plants, including two in Lansing, Mich., and one each in Linden, N.J., and Oklahoma City.

The agreement was reached after a ratification vote, which was scheduled to take place on the same day. If ratified, GM said some operations at Flint could resume as early as tomorrow, with no lost production in Canada. The workers had left their jobs over work-related issues, including excessive overtime and concerns about work conditions and the hiring of temporary workers.

Key Takeaways:

  • The strike involved nearly 12,000 workers at the Buick City complex in Flint, Mich., and affected seven GM plants.
  • The workers had been on strike for 72 hours over issues related to overtime, work conditions, and the hiring of temporary workers.
  • GM agreed to hire a certain number of permanent workers from a pool of GM employees whose benefits and return-to-work rights had expired.
  • The new hires will come from a group of GM workers who had not worked for the company for years.
  • The strike had a significant impact on GM's production, with several plants affected and the possibility of widespread shutdowns if the strike had continued.
  • GM has accelerated production and scheduled overtime at many plants this year due to a hot market for new cars and trucks.
  • The automaker has eliminated 52,000 hourly jobs since 1991 to boost productivity and profits.

Statistics:

  • 72 hours: duration of the strike
  • 12,000: number of workers on strike
  • 53,000: total number of hourly jobs eliminated at GM since 1991
  • 7: number of GM plants affected by the strike
  • 2: number of GM plants in Lansing, Mich. affected by the strike
  • 1: number of GM plants in Linden, N.J., and Oklahoma City affected by the strike

Sources:

  • The United Auto Workers and General Motors Corp.
  • Dave Yettaw, president of UAW Local 599
  • General Motors Corp. official statement
  • Associated Press report by Mike Mckesson Flint, MI