Collective Bargaining: The General Motors-United Auto Workers Deal
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Case Details:
Case Code : HROB109
Case Length : 19 Pages
Period : 2005-2008
Pub Date : 2008
Teaching Note :Not Available Organization : General Motors
Industry : Automotive
Countries : USA
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Excerpts Contd...
The Agreement
On September 26, 2007, a tentative agreement was reached
between GM and the UAW (Refer to Box I for the highlights of the GM-UAW deal).
Commenting on the agreement, Wagoner said, "This agreement helps us close the
fundamental competitive gaps that exist in our business.
The projected
competitive improvements in this agreement will allow us to maintain a strong
manufacturing presence in the United States along with significant future
investments."...
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A Win-Win for Everyone?
Analysts felt that the deal could change the competitive
landscape of the American auto industry. KeyBanc analyst Brett Hoselton wrote, "We view the tentative agreement and its apparent terms as a historic milestone
toward the long-term improvement in fundamentals and survival at the North
American automakers."...
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Outlook
With the historic UAW deal behind it, GM was hoping for a
better future.
Wagoner said, "We're delivering on the turnaround plan we established in 2005,
and have exceeded expectations on virtually all counts. We've set a strong
foundation that we can truly build on. We're encouraged by our progress in
revitalizing our product portfolio, strengthening our brands, reducing
structural cost and growing the business globally. At the same time, it's clear
that we'll face some challenging headwinds in 2008."... |
Exhibits
Exhibit I: GM's Financial Performance
Exhibit II: GM's Healthcare Costs between 1996 and 2005
Exhibit III: Differences between the Insurance Plans Offered by the US
Automobile Industry and Others
Exhibit IV A: Market Share of Automakers in the US
Exhibit IV B: GM's Market Share in the US
Exhibit V: The Members of UAW Picketing During the Strike
Exhibit VI: Trend in UAW Membership: 1980-2005
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