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true true true true true true true true

Indiana UAW Workers Go On Strike Against GM

By Samantha Horton & Associated Press

Posted September 16, 2019

Flags for General Motors and UAW fly on a flagpole.

(Rebecca Green/WBOI)

Thousands of Hoosiers will be affected by the United Automobile Workers strike against General Motors that began at midnight Monday. 

More than 49,000 UAW members walked off GM factory floors or set up picket lines early Monday as contract talks with the company deteriorated into a strike.

Workers shut down 33 manufacturing plants in nine states across the U.S., as well as 22 parts distribution warehouses.

Workers at GM’s Indiana facilities in Fort Wayne, Marion, Bedford and Kokomo are expected to join the strike.

The decision comes after GM and union officials were unable to come to an agreement on a new contract over issues including wages, health care and profit-sharing.

UAW Vice President Terry Dittes, the union's top GM negotiator, said a strike is the union's last resort but is needed because both sides are far apart in negotiating a new four-year contract. The union, he said Saturday, does not take a strike lightly.

"We clearly understand the hardship that it may cause," he said. "We are standing up for fair wages, we are standing up for affordable quality health care, we are standing up for our share of the profits."

Here are the main areas of disagreement:

— GM is making big money, $8 billion last year alone, and workers want a bigger slice. The union wants annual pay raises to guard against an economic downturn, but the company wants to pay lump sums tied to earnings. Automakers don't want higher fixed costs.

— The union also wants new products for the four factories slated to close. GM currently has too much U.S. factory capacity, especially to build slower-selling cars.

— The companies want to close the labor cost gap with workers at plants run by foreign automakers. GM pays $63 per hour in wages and benefits compared with $50 at the foreign-owned factories. GM's gap is the largest at $13 per hour, according to figures from the Center for Automotive Research.

— Union members have great health insurance plans and workers pay about 4% of the cost. Employees at large firms nationwide pay about 34%, according to the Kaiser Family Foundation. Automakers would like to cut costs.

Earlier this year, GM announced company plans to invest in the Fort Wayne plant, the largest of the four in Indiana.

According to NPR, production across the U.S. is expected to be halted, affecting nearly 50,000 workers, which is anticipated to idle U.S. production until a new contract is hammered out.

Talks were scheduled to resume at 10 a.m. EDT on Monday.

The Associated Press contributed to this story.

Contact Samantha at shorton@wfyi.org or follow her on Twitter at @SamHorton5.

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