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¶ … Resolution: General Motors (GM) versus United Auto Workers (UAW) in health care negotiations between unions and management
Given the recent overall negative financial environment in the American automobile industry, the disputes between labor and management at General Motors, regarding worker's health care and benefits have proven to be some of the most significant, contentious, and 'watched' disagreements arising between labor and management in recent times in American labor negotiations. As GM goes, it is often said, so goes the nation.
"Imagine that you are running a domestic automaker ... And burdensome union contracts limit your ability to cut costs." The burdensome nature of the currently existing union...
Also, it seems, according to many industry analysts, GM may have lost its vision for the future. (Akst, 2005)
Declining sales alone cannot be blamed. While, "many of GM's domestic problems were laid bare in the second quarter" such as its reliance on large sport utility vehicles it is fundamentally its "enormous health care costs," that lead "two of the three major credit ratings agencies to downgrade GM's debt below investment grade in May to junk bond status." (Hakim, 2005)
Out of necessity things must changing at the major automotive factory, if the company is to survive.…
Works Cited
Akst, Daniel. (24 Jul 2005) "The Green Machine that could be Detroit." The New York Times. Retrieved 24 Jul 2005 at http://www.nytimes.com/2005/07/24/business/yourmoney/24cont.html?hp&; ex=1122264000& en=3e1619f41f62e54e& ei=5059& partner=AOL
Hakim, Danny (21 Jul 2005) "Despite a June Surge in Sales, G.M. Posts Another Losing Quarter." Retrieved 24 Jul 2005 at http://www.nytimes.com/2005/07/21/business/businessspecial3/21auto.html
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