5:55 p.m. ET, Monday
Continue Reading Below
The tens of thousands of UAW members participating in the General Motors walkout will have to wait for their financial assistance benefits if the strike stretches beyond a few days.
Under UAW guidelines available on the union’s website, workers are eligible for weekly strike pay of $250, or $50 per day on a Monday through Friday schedule. Impacted workers must sign up to receive their paychecks, the first of which are dispersed on the 15th day of a strike.
If strikes stretch through the holidays, the UAW pays out bonuses in the week prior to Thanksgiving and Christmas. The union covers medical and prescription drug benefits, but not dental, vision, hearing or accident benefits.
Starting on Jan. 1, strike pay will rise to $275 per week.
At current levels, UAW strike pay would place workers below the national poverty line and the state minimum wage in Michigan, the Detroit Free Press notes.
Advertisement
5:20 p.m. ET, Monday
President Trump expressed hope for a fast resolution to the contract dispute that led more than 49,000 unionized General Motors workers to go on strike on Monday.
“I’m sad to see the strike,” Trump told reporters. “Hopefully it’s going to be a quick one.”
Trump has repeatedly criticized GM in recent months for shifting production out of the U.S. The president met with GM CEO Mary Barra on Sept. 5, days after he ripped the automaker for “moving major plants to China” amid an ongoing trade dispute between the two countries.
Trump was also a vocal critic of GM’s decision to slash its North American workforce and shutter several U.S.-based assembly plants in late 2018.
“I have a great relationship with the autoworkers. I got tremendous numbers of votes from the auto workers. I don’t want General Motors to be building plants outside of this country. As you know, they built many plants in China and Mexico and I don’t like that at all,” Trump added on Monday.
4:00 pm ET, Monday
General Motors’ first employee strike in more than a decade sent shares sharply lower on Monday as Wall Street fretted over the potential impact to the top U.S. automaker’s bottom line.
Shares fell more than 4 percent after an impasse in contract negotiations led more than 49,000 United Auto Workers members to walk off the job on Monday. The first strike against GM since 2007 brought more than 50 facilities across the country to a standstill on Monday morning, threatening the company’s supply chain.
For each day of the strike, GM could lose about $40 million to $50 million in profit before interest and taxes, RBC Capital Markets said in a note to investors. Other analysts placed the potential financial hit from delayed production at up to $100 million, the Wall Street Journal reported.
“We stood up for General Motors when they needed us most. Now we are standing together in unity and solidarity for our Members, their families and the communities where we work and live,” said UAW Vice President Terry Dittes said in a statement on Sunday.
The strike began at midnight after union leadership and GM officials failed to reach terms on a new four-year contract. Workers identified better wages, affordable healthcare and a larger share of profits as key targets in ongoing negotiations. GM’s decision to shutter four U.S. factories is also said to have roiled negotiations.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| GM | GENERAL MOTORS COMPANY | 37.21 | -1.65 | -4.25% |
UAW spokesman Brian Rothenberg said the two sides had “98 percent to go” to reach terms on a new contract.
GM shares were up 15 percent so far this year through last Friday.
GM said it has offered to make $7 billion in investments to create 5,400 new jobs at U.S. factories, increase wages and make a ratification payment of $8,000 to workers upon the deal’s completion, among other perks.
“We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways and it is disappointing that the UAW leadership has chosen to strike at midnight tonight,” GM said in a statement Sunday. “We have negotiated in good faith and with a sense of urgency. Our goal remains to build a strong future for our employees and our business.”
GM’s operations in Mexico emerged as a major point of contention in “tense” meetings between the two sides, a source with knowledge of the situation told FOX Business Network. The automaker has reportedly balked at UAW’s request to bring some production back to the U.S.
CLICK HERE TO READ MORE ON FOX BUSINESS
“We’re not going to respond to the speculation coming out of the talks on specific issues – or characterize the talks. We can say negotiations have resumed,” the company said.
The Associated Press contributed to this article.
This is a developing story. Check back for updates.
