After 20 straight days of negotiations, the United Auto Workers (UAW) union said it would strike General Motors Corp yesterday morning if a new contract agreement is not reached, saying the automaker has failed to address job security and other concerns.
"We're shocked and disappointed that General Motors has failed to recognize and appreciate what our membership has contributed during the past four years," UAW president Ron Gettelfinger said in a statement early yesterday.
The union had been expected to ask General Motors for guarantees of future production at US plants as part of the negotiations.
The union had set the strike deadline for 11am yesterday. Cal Rapson, the union's chief General Motors negotiator, said the union would remain at the bargaining table until the deadline.
He said the company had failed to meet the needs and concerns of the union members.
"Instead, in 2007 company executives continued to award themselves bonuses while demanding that our members accept a reduced standard of living," Rapson said in a statement.
"The company's disregard for our members has forced our bargaining committee to take this course of action," he said.
General Motors spokesman Dan Flores said the automaker is working with the union to resolve issues.
"The contract talks involve complex, difficult issues that affect the job security of our US work force and the long term viability of the company," Flores said.
"We are fully committed to working with the UAW to develop solutions together to address the competitive challenges facing General Motors," he said.
The union may be trying to pressure General Motors to get a deal.
Gettelfinger said as recently as on Friday that the union was trying to speed up negotiations and did not want to strike.
UAW has not called a nationwide strike during contract negotiations since 1976, when Ford Motor Co plants were shut down. There were strikes at two General Motors plants during contract negotiations in 1996.
It represents 73,000 General Motors workers at 82 US facilities nationwide. If workers go on strike, they will be paid US$200 a week plus medical benefits from the union strike fund.
The union had more than US$800 million in the fund as of last November, its Web site said.
UAW's original deadline to reach an agreement with GM was Sept. 14, but the union decided to extend the contract on an hour-by-hour basis and keep talking.
It was widely believed that the negotiators were making progress and a strike would not be called.
A local UAW official said on Sunday that negotiators had wrapped up work on most issues and were determining how much money General Motors must put into a trust fund for retiree healthcare that will be managed by the union.
The official spoke on condition of anonymity because the talks are private.
The healthcare fund -- known as a Voluntary Employees Beneficiary Association (VEBA) -- would be a significant change for the auto industry and has been the major issue in this year's negotiations. General Motors has approximately US$51 billion in unfunded retiree health care costs but the company is not required to put the full amount into the VEBA.
The union and General Motors have been wrangling over how much GM should put in and how much can be paid in cash or in stock.
The union picked General Motors as the lead company and potential strike target in the negotiations, which began in July. Ford Motor Co and Chrysler LLC have indefinitely extended their contracts with the union.
They are expected to match many of the terms of GM's agreement once it is reached. The three automakers have a total of US$90 billion in unfunded retiree health care costs.
If a tentative agreement is reached, local union leaders will meet for a briefing and then present the contract to their members. Any agreement would have to be ratified by a majority of General Motors' UAW members.
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