"Revving Up Resistance: Inside the General Motors Strike"
Like it or not cars are everywhere, yet in Detroit this narrative has been attacked. For six weeks the UAW: united auto workers, an american union in charge of Automobile workers, has gotten together and fought back against general motors through the form of striking. In the opinions of the workers, this strike was inevitable and long overdue. Around 45,000 UAW members were on strike out of a total of 146,000, which is 31% of workers. These exploited individuals were seeking an increase of annual pay over 40% over a four year length, shorter workweeks, and improved living conditions whether it be healthcare, benefits, or pension plans.
In retrospect, this strategy was extremely effective. General Motors (GM) were hit severely hard by this immense and sudden strike which dropped the value of shares by over 13% due to bad image and publicity. In fact, the escalating strikes cost the suppliers of GM more than a couple billion of dollars, and directly cost GM 800 million.
It was not on Oct 30 that General Motors finally folded their hands and struck a tentative deal, which put a stop to the union’s unprecedented 6 week campaign, which made the UAW victorious. Not only did the UAW increase pay for veteran workers at Detroit (Detroit 3 automakers) by 33%, won the right for future plant closures, and got 7 billion USD in terms of pension. In specific cases at Stellaris, top scale workers now earn 31 dollars per hour, and in the year 2028, GM granted the wage be compounded by 33 percent and adjusted the pay to 42$ per hour.
While many are exuberant in the freedom of the union which played a winning hand, many don’t realize the consequences.
Due to the increase in wages and pensions the new construction will cost GM 7 billion over 4.5 years, which means that the cost of cars will significantly increase. Specifically Ford, a huge giant under GM, will now add around 850 to 900 dollars per vehicle. Producing an already expensive car catalog, Ford now will become an intangible dream to many and restrict the purchase of cars under the name to many. Many others are destined to follow suit, specifically considering that Ford is already established and has the greatest equipment and still increasing prices drastically this number is only bound to increase for other less grand companies. Furthermore, the continuation of this policy is compounded throughout 4 years that means year after year more and more benefits are given in terms of pension or wages, resulting in exacerbated costs. GM is a profit driven company, and the only reason that they would agree to such a compromise is to not only increase their stock prices which increased subsequently after the finishing of the strike. Furthermore, a clause of the contract that is ignored by the protesters has to deal with harms to minority groups. The contract agreed on also restricts the hiring of lower paid temporary workers. However, this simultaneously means slamming the door on offering marginalized and economic desperate workers a consistent job opportunity.
Now understanding the intricate details of why strikes happen and their results it’s important to extend the scope of striking and what this entails for other sectors.
While many of us may be familiar with the Hollywood strikes, and how the general motors strike, what does this mean for other industries? Seeing the success of UAW against GW many other sectors may be incentivised to take action and a stand against unfair working conditions or oppressive employers. Especially, as laws such as Section 7 of the National Labor Relations Act allow workers to have legal protection from retention by their employees from participating and engaging in lawful strikes. This raises a question of should others follow suit and what will be the future of striking?
The simple answer and the logical extent of this information is just striking right? In fact, many trusted professionals such as Patrick Anderson of the Anderson Economic group predict that this strike “is a signal to the entire country that unionized workers can demand and get huge wage increases.”
However, the answers may not be simple at a deeper look and are multifaceted. An important observation to make is that the sectors that are generally new are the ones who currently lack a labor union. Aside from a labor union, they are often diverted little attention, resulting in the most atrocious working conditions. Due to the rough working conditions and low pay, they often don’t have enough money to even start a union or , even if there is a union, to pay the union dues. This means that for the most vulnerable of individuals they are unable to effectively strike.
Shifting perspectives to the employer, seeing more and more of these strikes occurring, companies may enforce ​​no strike clauses which prohibits people from striking during the duration of their construction. Aside from certain restrictions, certain companies may enforce policies or instill changes into their company to decrease the possibility for strikes to happen.
These questions are still up in the air, especially as debates continue as to whether the GM strike will be the precedent and the first domino that will in turn spur countless other strikes. The main talk surrounds essential industries: police, healthcare, teachers, and whether they should be permitted to strike; only time will tell.
The strike between general motors and UAW have changed the lives of millions around the world, and may continue to impact more and more people and industries.