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...first time since 1970, the United Auto Workers has launched a nationwide strike against General Motors Corp. The labor stoppage, involving more than 73,000 union members, began at 11 a.m. on Monday after GM and the UAW failed to reach an accord on a contract that could potentially lead to sweeping changes in the financing of health care for retired workers...

Author: /time Magazine | Title: The UAW's Surprising Walkout | 9/24/2007 | See Source »

...export vehicles to the U.S. in about one year. Surprised union members cited job security as the key issue as they walked out of GM assembly plants around Detroit. "They just told us we were going on strike and it was about job security," said one member of UAW Local 594 in Pontiac, Mich. only moments after the strike began. In fact, UAW officials acknowledged that they had made scant preparation for the walkout until Monday morning...

Author: /time Magazine | Title: The UAW's Surprising Walkout | 9/24/2007 | See Source »

Alan Baum, an analyst with the Planning Edge in Birmingham, Mich., said, that a strike over job security is likely to be the UAW's attempt to win concessions from GM in exchange for the union's acquiescence to parts of the health care financing agreement, embodied in the so-called Voluntary Employment Benefit Association (VEBA). "If the UAW its going to take the VEBA to its members," says Baum, "it has to have something to show for it. The issue then becomes, 'We gave here but this is what we got.'" Baum said the strike could well serve...

Author: /time Magazine | Title: The UAW's Surprising Walkout | 9/24/2007 | See Source »

...moment, the official focus is job security. "It's about investment in new products and its about economic issues that affect our membership," said UAW President Ron Gettelfinger at a press conference at union headquarters in Detroit. Gettelfinger said talks would resume immediately, but after nearly 10 days of intense negotiations he did not sound optimistic about the prospects for a quick settlement. "It was going to be General Motors' way at the expense of the workers," Gettelfinger said. "The company walked right up to the deadline like they really didn't care." He added, "You can only be pushed...

Author: /time Magazine | Title: The UAW's Surprising Walkout | 9/24/2007 | See Source »

Perhaps the greatest significance of the coming GM-UAW deal is that it's another step in the decline of employer-sponsored health care. UAW president Ron Gettelfinger says he would prefer a single-payer system, which would relieve the burden for both GM and the union. That won't fly, but presidential candidates will offer other ideas. The crisis in Detroit shows, in the extreme, that corporate paternalism in the form of health insurance has outlived its usefulness. GM's biggest mistake may have been to assume that it would always be strong enough to handle the promises...

Author: /time Magazine | Title: GM's Get-Well Plan | 9/20/2007 | See Source »

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