Back on the job Workers settle with GM after 40-day strike
General Motors workers voted 57.2% in favor of a new contract with the company, bringing an immediate end to a contentious a 40-day strike that paralyzed GM’s U.S. factories.
Workers voted 23,389 in favor of the deal, with 17,501 against it, according to a statement Friday from the United Auto Workers union.
The union now will turn its attention to bargaining with crosstown rival Ford Motor Co.
The vote means that workers will put down their picket signs and return to their jobs. Some will start as early as Friday night, and some production could resume Saturday.
Skilled trades workers will begin restarting factories that were shuttered when 49,000 workers walked out on Sept. 16.
The deal includes a mix of wage increases and lumpsum payments and an $11,000 signing bonus. But
GM will close three U.S. factories.
The five-week walkout was big enough to help push down September U.S. durable goods orders by 1.1%, the largest drop in four months.
Trades workers such as machinists and electricians likely will enter the plants quickly, restarting boilers and preparing paint shops, robots and other equipment to restart production.
On the picket line at a transmission plant in Romulus, Michigan, worker Tricia Pruitt said the wage gains were worth staying off the job for more than five weeks, but she’s ready to return to work.
Pruitt, a 15-year GM employee, was happy that the contract brings workers hired after 2007 up to the same wage as older workers in four years.
She’ll be glad not to be on the picket line if the strike ends. “Look at us now. We’re in coats,” she said on a gray, chilly Friday afternoon near Detroit. “We’d have been out here in the rain.”
Although GM dealers had stocked up on vehicles before the strike and many still have decent supplies, analysts say GM won’t be able to make up for the lost production. Had the strike been shorter, GM could have increased assembly line speeds and worked the plants on overtime to catch up. But many of the plants that make popular SUVs and pickup trucks already were working around the clock before the strike began.
Also, companies that supply parts to the factories and halted production during the strike will need time to restart, although GM has some parts in stock.
Jeff Schuster, senior vice president of the consulting firm LMC Automotive, estimates that GM has lost production of 300,000 vehicles, and he said maybe only a quarter of it can be made up.
“You can’t add days to the week and you can’t add hours to the day,” he said.
Some production losses will help thin inventory, especially of cars, Schuster said. But in late October and early November, GM will likely run short of colors and models of trucks and highdemand SUVs.