Labor pains and what’s at stake for the auto industry and America’s economy

There seems to be no easy road for America’s auto industry this past decade. From insolvency and bailouts, to increasing environmental scrutiny and now labor strife.

For General Motors, the brakes have literally been put on production across America as more than 48,000 unionized auto workers are striking with no end yet in sight of resolution between the auto giant and one of America’s most powerful unions.

“Wages and health care have emerged as contentious problems among several unresolved issues. Those briefed on discussions differ over what's on the table.

One person said GM has proposed that workers pay 15% of their health care costs, up from the current estimated level of 3% of health expenses. Another person familiar with talks said GM's offer preserves current health care benefits at the same cost.

GM and Ford each spend $1 billion a year on worker health care, which some industry observers consider unsustainable. The average U.S. worker pays about 28% of health care costs, according to the Center for Automotive Research in Ann Arbor.

“We have many unresolved issues,” Terry Dittes, vice president of the UAW GM department, said early Monday in an interview with Bloomberg. “It’s not just a couple of things. How long will this take? I can’t say.”  September 16, Detroit Free Press.

This strike action could just be the tip of the spear of what’s to come.

• How long will this strike likely go on for and how long can either side last without a deal?
• Is this just the start of organized labor pushing back against years of cuts, roll backs and anti-union legislation across America?
• Is GM correct when it says items like health care benefits aren’t sustainable?
• What kind of impact will the strike have? Who will it impact?

There are a lot of questions still to be asked, and if you are a reporter covering this subject – that’s where our experts can help.

Dan Cornfield is Professor of Sociology, Political Science, and American Studies at Vanderbilt University, Editor-in-Chief of Work and Occupations, and a Fellow of the Labor and Employment Relations Association. Professor Cornfield is an expert in the areas of American labor movement. He is available to speak with media regarding the current strike at General Motors – simply click on his icon to arrange an interview.