(Time)
The United Auto Workers union is leading its first strike against General Motors in 12 years, digging in for a fight over jobs and benefits that could cost the carmaker dearly for an indefinite period.
The strike that took effect at midnight may cost GM about $50 million a day in earnings before interest and taxes due to lost production, Dan Levy, an analyst at Credit Suisse, said Sunday. The shares fell 3.2% in pre-market trading on Monday.
While GM touted an offer to invest in plants across the U.S. and boost wages and benefits, UAW leadership has been rocked by a corruption scandal and needs to show willingness to bring the fight to an automaker that’s been scaling back its workforce.
“The union is playing some hardball. It seems they are pretty far apart,” said Kristin Dziczek, vice president of the labor and economics group at the Center for Automotive Research. GM’s offer “still doesn’t address some of the union’s demands.” Read more