GM-UAW Dance

Well, the UAW members have walked. It won't mean much in the short term, but if it become a long-term strike then things get ugly.

Most don't expect that to happen. I don't either. I just hope it doesn't become a case of conventional wisdom (because you know what they say about conventional wisdom).

If you can believe the reporting on this story, the hang up is future job guarantees for the UAW membership. That may be a tough nut to crack, because Rick Wagoner and GM management have certain realities. And Ron Gettelfinger has to convince the union's membership that he's fighting aggressively on their behalf and not readily giving away the store.

Anyway, the good thing is that talks have resumed. Gettelfinger reportedly has always been on good terms with Wagoner and Fritz Henderson. You can bet they're saying a lot more in private than public.

If you subscribe to The Wall Street Journal, you'll read the finest coverage of this story anywhere here. And Bloomberg's reporting of the UAW walk-out is here.

Comments

[Sivaram Velauthapillai]

For all the criticism that Wagoner has received over the years, perhaps his greatest contribution has been his good relationship with the union. If Wagoner had been replaced with someone else a couple of years (as some had been calling for), I think the union-GM relations would be a nightmare right now. Instead, I think this problem can be worked out but it won't be easy.

[Todd Chalem]

Can you provide some color on what sort of guarantees the UAW is expecting? How does an employer guarantee jobs?

[John]

Sivaram: You're right about Wagner (and the UAW knows it). You can rest assured they're glad Carlos Ghosn didn't replace him as top guy in the boardroom.

Todd: I only know what's in the news. I don't see who an employer in this day and age guarantees jobs. And I bet Gettelfinger knows that as well. Then again, he has to get the rank and file to ratify any agreement.