This week's topic is the recent United Auto Workers Union (UAW)
strikes. By way of background, why did the workers go on strike?
The Auto Workers Union contract with General Motors had expired, and
they wanted job security and more benefits.
Although the strike was resolved after two days, the results will have
far-reaching consequences for the auto industry.
What was General Motors' position?
- Health care is a big cost to General Motors.
- In fact, if you factor in the cost for health care on an hourly basis,
it figures out be a payout from the auto maker to workers of almost
$30 an hour per worker ... just for the benefits.
What kind of deal did the Auto Maker sign to end the strike?
- The deal includes GM divested itself of an estimated $5 billion in
annual health care costs by shifting them to a voluntary employee trust
fund.
- As a result, GM has more cash to develop new product lines and
- The union is in control of the workers health plan.
How will this deal affect upcoming negotiations with Chrysler
and Ford?
- Chrysler and Ford have many of the same issues as GM,
- so the deal struck with General Motors will have an impact on those
negotiations.
The failure of a U.S. automaker
would harm our economy.
So it is important that big business and unions work out there
differences.
