In Wake of GM Strike, a Bolder 'Big Labor' as Autoworkers Vote on Settlement, Experts See Boon for Unions in Tight Labor Market and Strong Economy

By Abraham McLaughlin, writer of The Christian Science Monitor | The Christian Science Monitor, July 3, 1998 | Go to article overview

In Wake of GM Strike, a Bolder 'Big Labor' as Autoworkers Vote on Settlement, Experts See Boon for Unions in Tight Labor Market and Strong Economy


Abraham McLaughlin, writer of The Christian Science Monitor, The Christian Science Monitor


The fine print of the strike-ending agreement between General Motors and the United Auto Workers may yet reveal which side benefits most after the contentious walkout. But labor's determination to go to the mat also signals a newfound brawn for America's unions.

To be sure, GM won some of the productivity gains it so desperately sought. But the strike held another big lesson for management and labor alike - that two union locals in the trailer- park town of Flint, Mich., were able to all but shut down production at the biggest company in the world.

After years of retrenchment and tentativeness, many experts say, unions at last are in a greater position of strength - at least for now.

"A booming economy, the tight labor market, revitalized unions - all this gives workers more leverage and makes for a much bolder labor movement," says Harley Shaiken, a labor-affairs professor at the University of California at Berkeley.

It all means a potential increase in labor's political voice and the number of strikes. Contrary to many predictions, "the GM strike demonstrates that the strike is not dead as a weapon," says Professor Shaiken.

But for now, the United Auto Workers (UAW) had wrangled enough out of GM - and its workers had gone long enough without pay.

Workers were expected to be back on the job today after voting their approval for the settlement yesterday. In it, GM reportedly agrees not to sell four plants - a speedometer facility and a spark- plug plant in Flint and two brake plants in Dayton, Ohio - before January 2000, thus boosting workers' job security. GM may also have to invest some $180 million in equipment - a further guarantee of continued commitment.

In return, the UAW reportedly agreed to boost productivity and not strike at Dayton and one of the Flint facilities.

UAW and GM officials also pledged better cooperation to avoid more strikes. But workers at several other plants - including the Saturn facility in Spring Hill, Tenn., and the Corvette plant in Kentucky - may still walk out.

Power of a strike

Indeed, with today's economy, their incentives are big to do so.

Manufacturers must race to keep up with booming consumer demand. Strikes hurt their production and can put big dents in market share and customer loyalty - which can have a long-term impact on their success. (GM lost $3.2 billion in profits in the recent strike, although it may make up for much of that with 24-hour production. The UAW's 200,000 members, by contrast, lost nearly $1 billion in pay, much of which will be made up in overtime work.

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