30-Day GM Strike To End Soon
General Motors and United Auto Workers are close to working out an updated contract deal that will end a 30-day strike.
The strike has cost the automaker an estimated $1.5 billion. Additionally, any updated contract is likely to set GM back on their effort to cut $4.5 billion in annual expenses. GM Chief Executive, Marry Barra, met with union leaders for the first time in an effort to end the strike. GM’s shares increased by 2.1% once news broke about the strike ending soon.
Wages have been at the forefront of concerns brought forward by union officials. More specifically, union leaders want to shorten the eight years it takes to for a new hire to reach a top wage. That top wage is currently $30 dollar per hour. Additionally, union leaders are asking for wage increases in each year of the four-year contract. These wage increases would come both in an increase in hourly earnings and lump sum bonuses.
There has also been an effort to tighten up the language in the contact assuring that factory closures would not occur. Currently, the contract says that factories will not be closed unless extreme market conditions warrant the automaker to so do.