Photo: CNN
Things are heating up in the conflict between General Motors and its unionized workforce, as protests continue. On Wednesday GM warned that some benefits would be paid by the union’s strike fund, causing the UAW to react.
Starting last Sunday, GM’s workers are on strike, demanding better "wages, health care benefits, temporary employees, job security and profit sharing,” Over 50 GM facilities are affected, with an estimated 46,000 hourly workers refusing to assume their posts.
Even though negotiations between the two sides have resumed, there are signs the conflict will continue for a while longer. On Wednesday, September 18, GM notified the union through an internal letter it will stop paying health care benefits because of the work stoppage.
According to the Fox Business, GM said some of the benefits would be paid from the union’s strike fund.
"We understand strikes are difficult and disruptive to families," GM said in a statement cited by the source.
"While on strike, some benefits shift to being funded by the union’s strike fund, and in this case, hourly employees are eligible for union-paid COBRA so their health care benefits can continue."
On Monday, the carmaker made public a number of ideas it has to end the stalemate. Among the things it promised to do are the investment of $7 billion in new products, the addition of 5,400 new jobs, yearly wage increases, and ratification payment of $8,000.
GM’s announcement that the UAW should pay worker benefits was deemed unfortunate by the UAW, who accused the carmaker of using this as leverage to “unfair concessions.” Nevertheless, the union’s representatives said, the UAW “will pick up the tab through our emergency strike fund."
The current strike is the largest in the auto sector since 2007, and also the largest against any business by any labor organization in the U.S. since the same year.
Even though negotiations between the two sides have resumed, there are signs the conflict will continue for a while longer. On Wednesday, September 18, GM notified the union through an internal letter it will stop paying health care benefits because of the work stoppage.
According to the Fox Business, GM said some of the benefits would be paid from the union’s strike fund.
"We understand strikes are difficult and disruptive to families," GM said in a statement cited by the source.
"While on strike, some benefits shift to being funded by the union’s strike fund, and in this case, hourly employees are eligible for union-paid COBRA so their health care benefits can continue."
On Monday, the carmaker made public a number of ideas it has to end the stalemate. Among the things it promised to do are the investment of $7 billion in new products, the addition of 5,400 new jobs, yearly wage increases, and ratification payment of $8,000.
GM’s announcement that the UAW should pay worker benefits was deemed unfortunate by the UAW, who accused the carmaker of using this as leverage to “unfair concessions.” Nevertheless, the union’s representatives said, the UAW “will pick up the tab through our emergency strike fund."
The current strike is the largest in the auto sector since 2007, and also the largest against any business by any labor organization in the U.S. since the same year.
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