Just 2 days after going on strike against General Motors, it was over with. Well, that was quick. But then again, neither side wanted it to last very long any way.
80 GM plants were idle for only two days before a new deal was hammered out and it was over with. Under the new contract, a health care trust fund for retirees gets set up and some job guarantees go in place for current union workers. Some temporary workers, at a lower wage scale, will get permanent jobs with union blessing but on a two tiered pay scale approach. That means they'll get a lower pay scale than normal.
For GM, it's good news. $50 billion in long term liability gets taken off the corporate books by the trust fund setup. You can tell Wall Street like the news because GM's stock jumped up in value just under 10% higher on the day the settlement was announced.
Now, with stock value going up, manufacturing costs headed down, and the potential for profit there, maybe GM will get back to building quality again. Without it, none of this will make much difference as the imports continue to chew away at GM's US market share.
ABOUT THE AUTHOR
Known nationwide as a leading Lemon Law attorney, Ronald L. Burdge has represented literally thousands of consumers in "lemon" lawsuits and actively co-counsels and coaches other Consumer Law attorneys. From 2005 through 2018, attorney Ronald L. Burdge has been named as the only Lemon Law Ohio Super Lawyer by Law and Politics magazine and Thomson Reuters Corp., Professional Division. Burdge restricts his practice to Lemon Law and Consumer Law cases. The Ohio Super Lawyer results are published annually in the January issue of Cincinnati Magazine. Ronald L. Burdge was named Consumer Law Trial Lawyer of the Year 2004 by the National Association of Consumer Advocates, the nation's largest organization of consumer law private and government attorneys. "Your impact on the auto industry has been magnified many times over because of the trail you blazed for others," stated NACA's Executive Director, Will Ogburn. Burdge has represented thousands of consumers in Ohio, Kentucky and elsewhere since 1978 and is a frequent lecturer to national, state and local Bar Associations and Judicial organizations. Burdge is admitted to Ohio's state and federal courts, Kentucky's state courts, and Indiana's federal courts. Other court admissions are on a "pro hac" temporary, case by cases basis.