Then, Vice President and Director of the UAW General Motors Department Terry Dittes said, "We have made it clear that there is no job security for us when GM products are made in other countries for the goal of selling them here in the United States of America".
Credit Suisse lowered its 2019 earnings per share estimate for GM by 83 cents to $6.11, below the Wall Street consensus of $6.56, according to IBES data from Refinitiv, as the No.1 automaker is also at the risk of losing market share to smaller rivals such as Ford Motor F.N . The offer also give workers enhanced profit-sharing with unlimited upside and improves their ratification bonus. Workers and the union are pushing GM on a host of issues, including wages, health care and the use of temporary workers.
GM said that the day before the strike began that it had offered to make $7 billion in new U.S. investments in eight facilities in four states, but did not specify timing, location or products with the exception of a planned electric truck. "We will continue to provide information in a straightforward, and importantly, factual way".
Scott Sandefur, GM's vice president of North American labor relations, criticized the UAW's plan to make a counter proposal only after five committees resolve a series of issues, and the automaker went public with the broad outlines of its offer.More news: The human cost of Turkey's military action in Syria
GM Chief Executive Officer Mary Barra met on Wednesday with UAW President Gary Jones and Dittes to urge a faster response by the union to the company's last offer.
The messages mark a turning point for GM in the fourth week of a strike that's halted production at 34 USA plants and disrupted output at factories in Mexico and Canada. Dittes said he did not know when the issues would be resolved, suggesting a final deal may not be close.
"While investors may look through the one-time impacts.the strike reminds us of the challenge of investing in OEMs at this point in the cycle", analyst Dan Levy wrote in a note.
Moody's said in a Friday report that GM must maintain its flexibility under any new deal to build electric and self-driving vehicles without its fixed costs rising further.More news: Zuma to face corruption trial after court denies stay of prosecution
UAW workers are concerned that as GM shifts to more electric vehicles it will require fewer workers, and that workers in battery production plants may earn less than those at existing transmission plants. That's why before the contract deadline, we made an offer that we felt was strong.
"We have openly told GM that we do not see a solid commitment to this talented and skilled workforce that has made them billions of dollars in profits", reads a letter from Dittes. Union workers are angry about production of trucks and sport-utility vehicles in Mexico.
The strike started on September 16 involving about 48,000 UAW members. We believe that the vehicles GM sells here should be built here.More news: Apple’s next year iPhone models will cost more than current gen models
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