Organized Labor Reasserts Itself with UAW Strike
The United Auto Workers began its 40 day strike of GM facilities on Sept. 15 (Image)
On Oct. 25, the United Auto Workers announced that its membership had ratified an agreement to end its strike against General Motors. The action began in mid-September over controversies including proposed changes to the company’s healthcare plans and the status of temporary workers, who make far lower wages than other employees while performing similar work. After six weeks, it became the longest GM walkout since 1970. While the strike may now be over, its effects still reverberate throughout the community.
A strike is a game of attrition, and the two sides came together before they could see the worst impacts. GM estimates a loss of nearly three billion dollars, but this loss is not expected to hamper long-term growth. Per the agreement, workers receive a payout to make up for lost wages. Less fortunate, however, are employees for GM suppliers who lost work during the strike, but do not expect compensation. The lost production will slow economic growth in states such as Michigan, which has already suffered from the U.S.-China trade war, but the impact is expected to be relatively limited. More difficult to quantify are the effects on various dealers, leasers and small businesses affiliated with GM or its employees, which lost business during the strike.
Another controversy loomed over the process. The strike was called soon after charges of embezzlement against high-ranking union officials were announced. However, these charges did little to impact solidarity among the strikers. According to supporters, such as labor activist Jane Slaughter, strong resentment against the union administration existed among the rank-and-file, but their desire to take on GM was even greater, especially since the membership has the power to vote down any agreement not to their liking.
The full agreement between GM and the UAW spans over 700 pages. In a statement to its membership, the UAW shares accomplishments such as an unaltered healthcare plan, a pathway to permanent status for temporary workers, and overall increased wages. However, some analysts, such as Alexia Fernández Campbell of Vox, consider it “hardly a victory” as it allows GM to permanently close three plants. This provision made the deal controversial among membership, but ultimately could not stop its passage by a 57-43 margin.
The strike may not have lived up to all of its hopes, but it still marks a significant step for the labor movement. After the UAW showed its willingness to take action, Ford agreed to a deal to increase investment and protect jobs rather than face the possibility of its own strike. As the union is set to begin negotiations with Fiat Chrysler, the prospect of another strike will loom large. Much has been made of the fall of organized labor in the United States over the past decades. The structural factors behind it, such as the decline of manufacturing jobs, may not be easily reversed, but this action demonstrates a newfound assertiveness—perhaps not unconnected with the rise of working class-centric progressive politics. Time will tell whether it is the start of a larger trend.