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« Automakers go back to seating's future | Main | GM-UAW talks continue as strike enters second day »

September 25, 2007

In G.M. Strike, Both Sides See a Crossroads

The United Automobile Workers union wielded its most potent weapon against General Motors yesterday, sending 73,000 workers to picket lines in its first national strike at G.M. since 1970, according to the New York Times' Micheline Maynard.

Union officials said they were left no choice but to strike because General Motors was unwilling to accept the union’s demand that it protect workers’ jobs and benefits.

For General Motors, its unyielding stance reflects its decision to accept the short-term pain of a strike at 80 facilities in 30 states to achieve its goals: a lower cost structure and more flexible work force to better compete against surging Japanese automakers like Toyota and Honda.

“This really is a defining moment,” said James P. Womack, an expert on manufacturing and co-author of “The Machine That Changed the World,” which studied the plants of Japanese automakers in the United States. “G.M. has backed away from defining moments for generations. And now somebody there has finally said, ‘We have to do this because it’s a new era.’ ”

The length of the walkout may hinge on the answers to two crucial questions: How long can the U.A.W. afford to stay out? And how long can G.M. endure a strike? While an indefinite strike would pose risk to both sides, each has made a calculated decision that it has more to gain by standing tough.

Posted by Peter C. T. Elsworth  at 9:58 AM to GM , Unions , commentary | Permalink

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Peter C. T. Elsworth
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