This archive report was first published on 6 October 2019.
On October 6, 2019, General Motors and the United Auto Workers union hit a roadblock in their contract talks, with the union expressing disappointment over the company's response to their proposals.
The union, which has been on strike since September 16, 2019, had pressed G.M. to shift production of some sport utility vehicles and pickup trucks from Mexican factories to domestic plants in the US, in order to create and secure jobs for American workers.
According to two people close to the talks, the union had offered a new contract proposal over the weekend, but G.M.'s response failed to address key concerns.
“We, in this union, could not be more disappointed with General Motors,” said Terry Dittes, the U.A.W.'s lead negotiator with G.M., in a letter to members. “These negotiations have taken a turn for the worse.”
While G.M. has offered to invest $7 billion in US plants that would create 2,700 jobs and preserve 2,700 others, the union remains concerned about job security for its American workers.
“G.M. sees it as the flexibility to survive the changes in buyer tastes and from gas to electric vehicles. The U.A.W. sees it as job security for workers who are as worried as G.M. is about the changes,” said Erik Gordon, a University of Michigan business professor who follows the auto industry.
