Negotiations in the Spotlight: GM - UAW
If you have ever thought that there is little public interest in business negotiations, then you have not been following the recent news regarding negotiations between troubled automakers Chrysler and General Motors (GM) and their unions. These high-stakes negotiations have received lots of publicity precisely because they are determining the future of the auto industry in the United States.
We know how Chrysler’s negotiations turned out, and the car maker is headed for a partnership with Fiat.
This week, GM announced that it is terminating franchising agreements with hundreds of GM dealers nationwide. But that is only part of the GM restructuring push. GM is also negotiating with the United Auto Workers (UAW). The automaker faces a June 1 deadline to complete its restructuring, or it will face bankruptcy.
The issues that are creating most heat between GM and the UAW are:
• UAW opposes GM’s plan to import vehicles
• UAW opposes GM’s proposed plans to shut down 16 U.S. factories
The Associated Press (AP) reports that “Industry analysts say GM needs to import small cars from countries with lower labor costs to remain competitive.” Meanwhile, the UAW is worried about the loss of 21,000 jobs in the United Sates. (Read AP report here:
http://www.google.com/hostednews/ap/article/ALeqM5ipWue5E-KwNeeucTEHBCCFsyzvUQD988QBQ80
The UAW has increased its pressure on GM by lobbying Congress. The negotiations are also complicated by the many parties involved, including the US government, GM’s management, bondholders and secured lenders, dealers, part suppliers and other parties. (Read the Detroit Free Press report here:
http://www.freep.com/article/20090519/BUSINESS01/905190324/1285
According to the AP report, there is an incentive for the UAW to reach an agreement, because if GM goes into bankruptcy, judges in the case have the power to reverse or dismiss contracts.
It will be interesting to see where these negotiations end up.
Do you think that Chrysler negotiations have created a precedent for GM to follow?
We know how Chrysler’s negotiations turned out, and the car maker is headed for a partnership with Fiat.
This week, GM announced that it is terminating franchising agreements with hundreds of GM dealers nationwide. But that is only part of the GM restructuring push. GM is also negotiating with the United Auto Workers (UAW). The automaker faces a June 1 deadline to complete its restructuring, or it will face bankruptcy.
The issues that are creating most heat between GM and the UAW are:
• UAW opposes GM’s plan to import vehicles
• UAW opposes GM’s proposed plans to shut down 16 U.S. factories
The Associated Press (AP) reports that “Industry analysts say GM needs to import small cars from countries with lower labor costs to remain competitive.” Meanwhile, the UAW is worried about the loss of 21,000 jobs in the United Sates. (Read AP report here:
http://www.google.com/hostednews/ap/article/ALeqM5ipWue5E-KwNeeucTEHBCCFsyzvUQD988QBQ80
The UAW has increased its pressure on GM by lobbying Congress. The negotiations are also complicated by the many parties involved, including the US government, GM’s management, bondholders and secured lenders, dealers, part suppliers and other parties. (Read the Detroit Free Press report here:
http://www.freep.com/article/20090519/BUSINESS01/905190324/1285
According to the AP report, there is an incentive for the UAW to reach an agreement, because if GM goes into bankruptcy, judges in the case have the power to reverse or dismiss contracts.
It will be interesting to see where these negotiations end up.
Do you think that Chrysler negotiations have created a precedent for GM to follow?
Labels: Improving Business Results
posted by Karrass at
11:12 AM
0 Comments:
Post a Comment
<< Home