United Auto Workers and General Motors Strike on September 26, 2007

On September 26, 2007, the United Auto Workers and General Motors came to an agreement on ending the union strike. "The deal closed a major competitive gap" says GM spokesman Tom Whickham. The United Automobile Workers strike against General Motors sending 73,000 workers in its first national strike. Workers were left with no choice because General Motors unwilling to accept union's demands that protects its workers jobs and benefits. There have been crucial questions such as how long can the U.A.W. afford to stay out? How long can GM endure a strike?

The GM company manufactures more cars than other countries and rapidly expanding production overseas becoming the world's major car manufacturer. Although, in the last two years its losses of more than $12 billion. Since the 1970 strike, 400,000 workers were off the job for 67 days. GM and U.A. W. plan was called for VEBA, a voluntary employee benefit association where they agreed to discuss healthcare trust and benefits for current and retired GM workers as well as their families. "I think a lot of people are happy the strike happened, because they believe the company is working for them" says president of U.A.W. local 2164 in Bowling Green, KY Eldon Renaud. Mark Oline of Fitch Ratings cautioned the damage caused by the walkout would have a ripple effect GM's suppliers. The union pays its workers $200 a week on taking shifts on the picket line, has nearly $900 million in its strike fund to cover a two-month walkout.

The United Auto Workers Union and General Motors reached an agreement ending the two day strike. The idea of the new contract is a healthcare trust a tentative agreement that was reached on 3:05 a.m. Eastern. Contract negotiations for the union to agree to form such trusts, maintaining that their cost hinder their ability to compete with Japanese auto companies. The union would supervise benefits for workers, families and relatives. At the time of the 1970 strike, GM accounted for 50 percent of all U.S. auto sales and foreign manufactures for only 15 percent. It was the nation's largest profitable corporation.