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 The showdown between General Motors Corp. and the United Auto Workers took a dramatic turn on Monday when thousands of U.S. workers walked off the job. Still, auto industry watchers are hopeful that the two sides can avoid a long-term shutdown that could permanently cripple the automaker. Indeed, speaking Monday just a little over an hour after 73,000 workers struck, UAW officials said they intended to return to the negotiating table later in the day. However, their frustration was evident. Union president Ron Gettelfinger at a news conference said “the company walked up to the deadline like they really didn’t care. As a result of that, we called a strike.” In the near term, GM can weather a short strike, holding a two-month inventory on some vehicles but less on popular sellers such as the Buick Enclave (pictured at left) or Chevrolet Cobalt.
The two sides appeared to have been making progress over the weekend, with sources on both sides saying the framework for establishing a trust to manage retiree healthcare costs, an issue that has dominated discussions, had been agreed upon. Most in the industry expect a deal to be reached in the coming days, with both sides mindful of the damage that a long-term strike would do to GM’s already wobbly domestic operations. But issues still remain, including union calls for job security and a guarantee on future North American production rates. Meanwhile Ford Motor Co. and Chrysler LLC watch on the sidelines, knowing that their own success getting the concessions they need to continue their turnarounds could rest on how quickly GM and the UAW can reach a deal, and on which side caves first in the process. —Lou Whiteman See the full story on TheDeal.com Tags: General Motors, corporate restructuring, automobiles Categories Deal Video
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