G.M. workers on strike

Press, 21 September 1984, Page 8

G.M. workers on strike

NZPA-Reuter Detroit The five-day-old United Auto Workers’ strike against General Motors spread rapidly yesterday, affecting almost 108,000 workers nation-wide. The union issued a statement saying there was virtually no progress in talks with the world’s largest car company, although negotiations on a new contract were continuing.

Wall Street reacted sharply to the strike. G.M. stock dropped by $U52.25 to JU574.50 a share. Almost 1.1 million shares were traded. The union, which wants extended job security guarantees and pay rises for its 350,000 members at G.M., has called selective “local” strikes against 16 factories that build the company’s most profitable cars and trucks as part of its bargaining for a new national contract.

It said about 92,000 workers were on strike yesterday. G.M. said more than 16,000 others employed at its components plants had been told not to report to work because their services were not required. “The whole thing’s going to start tumbling down pretty soon if they don’t get it solved,” a G.M. official said.

Financial analysts said the strikes were costing G.M. up to ?USISO million a week in lost production. So far, the company said, the strikes had cut its scheduled output more than 26,000 cars and 6000 trucks. The union has held back on calling a company-wide work stoppage to keep its national negotiations open, minimising the drain on its ?U5571.5 million strike fund, from which workers engaged in the walk-outs are paid benefits of ?USBS a week. Economists said that if strikes continued or were expanded, the impact on G.M. and ancillary industries such as' steel, rubber, outside parts manufacturers, and transport would have a significant effect on the United States economy.