For the first time in 11 years, General Motors’ employees are striking.
Earlier, more than 49,000 members of the United Auto Workers (UAW) union walked off factory floors and on to picket lines, as contract negotiations fell apart.
At the moment, the strike shuts down 33 manufacturing plans in nine states, in addition to 22 parts distribution warehouses. So far, it’s unclear how long the strike will last with the union saying General Motors has budged very little after months of talks. Meanwhile, the company has said it made substantial offers including higher wages, and investments.
UAW Vice President Terry Dittes said, “We clearly understand the hardship that it may cause. “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,” as quoted by MarketWatch.
At the same time, GM says it did offer pay raises of $7 billion worth of U.S. factory investment, which would result in 5,400 new positions. In addition, GM said it offered higher profit sharing, better health benefits, and an $8,000 payment to each employee upon ratification.
There’s no telling how long the strike will last at the moment.
However, negotiations are expected to resume this morning.