GM workers return to work after only 48 hours
By Jacob Geiger
After a two-day strike, 73,000 General Motors employees
returned to work Wednesday.
GM and United Auto Workers negotiators agreed on a four-year contract
around 3 a.m. Wednesday. UAW President Ronald Gettelfinger sent union
members to the picket lines Monday after negotiations between the
company and union stalled.
Union members still must approve the contract. That vote is scheduled
for this weekend.
In a change from past strikes, Gettelfinger had warned GM that a strike
was coming, allowing the company to beef up its inventory in advance of
the strike.
Under the new contract, massive retiree health care payments will be
transferred from GM to a UAW-controlled trust fund. The company will pay
$35 billion into the trust, which will appreciate over time and could
help pay union employees’ retiree and health care benefits for the next
80 years.
The company will also get to remove $51 billion in retiree health care
benefits from its books. The huge financial burden was making it
difficult for the company to borrow money.
The agreement could set a pattern for the UAW’s upcoming negotiations
with Ford and Chrysler, the other two major Detroit automakers. News of
the agreement sent GM’s stock up sharply in trading Wednesday. Shares
closed up $3.26 Wednesday evening before retreating about 60 cents in
trading Thursday.
General Motors
United Auto Workers
Produced by Washington and Lee journalism students.
Lead supervisor: Prof. Brian Richardson
Reporting supervisors:
Technical supervisor: Michael Todd