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After negotiations on a new contract broke down, the UAW (United Auto Workers) union announced Sunday that its 49,000 workers at General Motors plants in the U.S. would go on strike just before midnight.
Union votes to strike at General Motors' US plants
The United Auto Workers union announced Sunday that its roughly 49,000 workers at General Motors plants in the U.S. would go on strike just before midnight because contentious talks on a new contract had broken down.
About 200 plant-level union leaders voted unanimously in favor of a walkout during a meeting Sunday morning in Detroit. Union leaders said the sides were still far apart on several major issues.
Strike by UAW would cost GM, the union and its members
A strike by the United Auto Workers could cost General Motors Co. more than $1 million per hour at each plant that's idled, and send as many as 46,000 hourly workers to picket lines. That's what the company and workers are facing as the clock ticks down to a contract expiration after 11:59 p.m. Saturday.
While GM would hemorrhage millions, workers would feel it in their pocketbooks with strike pay of only $250 per week for those who show up to picket. The UAW strike fund totaled more than $721 million at the end of 2018, but a widespread walkout across GM's 35 plants across the Midwest, Texas and New York would draw that down quickly.
"This Is Our Last Resort": 48,000 UAW Workers Set For First Nationwide Strike At GM In 12 Years
On Tuesday, the union's membership voted overwhelming to authorize the leadership to call a national strike, with 96% of members supporting the action.
According to Reuters, the strike could swiftly disrupt GM’s operations across North America and could hurt the broader US economy at a time when the auto industry is already suffering from slumping sales.
GM's hourly workers will also likely suffer from greatly reduced strike pay. GM workers last went on strike during contract talks in 2007. That strike only last two days, but a more serious strike occurred in Flint, Michigan, in 1998, lasted 54 days and costing the No. 1 US automaker more than $2 billion.
The union has been struggling to stop GM from closing plants in Ohio and Michigan while arguing that workers deserve higher pay after years of record profits.