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GM strike takes ‘turn for the worse’ as Union rejects latest offer


DAVID: GM AND THE UAW BATTLE ENTERING A FOURTH WEEK NOW, AND NOW A UNION OFFICIAL IS SAYING THE NEGOTIATIONS HAVE QUOTE, TAKEN A TURN FOR THE WORSE. AS THE LABOR UNION REJECTED THE LATEST OFFER THAT WAS ON THE TABLE. JOINING US TO MAKE SENSE OF IT ALL, HOPEFULLY, THE CAR COACH, LAUREN FIXX. GOOD TO SEE YOU. HOW AND WHEN DOES THIS END?>>WELL, I HAVE A FEELING THIS MIGHT BE A LITTLE LONGER THAN WE EXPECTED. GM HAS ALREADY LOST LIKE $660 MILLION. LOT OF PEOPLE OUT OF WORK AND PARTS SUPPLIES ARE A BIG ISSUE AND THAT MEANS DEALERS AREN’T GETTING PARTS EITHER. THIS HAS TO BE RESOLVED, THE QUICKER THE BETTER. I KNOW LARRY KUDLOW WOULD LIKE TO GET IT RESOLVED AS WELL BECAUSE IT’S IMPACTING MANUFACTURING NUMBERS.>>LAUREN, KRISTINA HERE. I WANT TO ASK YOU A QUESTION. ON FRIDAY, THE TOP GM NEGOTIATOR FOR UAW, HE ACTUALLY SAID THAT THE UNION HAD FOUND COMMON GROUND ON HEALTH CARE AND ON A PATH TO PERMANENT EMPLOYMENT FOR TEMPORARY WORKERS. SO IN YOUR OPINION, WHAT IS THIS MAJOR STICKING POINT? YOU JUST SAID IT COULD POTENTIALLY TAKE A LOT LONGER.>>WELL, I THINK THEY WANT TO REPLENISH SOME OF THE LOSSES THEY TOOK WHEN GM WENT BANKRUPT. THEY HAD TO GIVE UP A LOT OF THEIR RETIREMENT ACCOUNT AND ARE TRYING TO GET THAT REFLENISHED BECAUSE A LOT OF PART-TIME PEOPLE THAT LOST THEIR JOBS AND ARE NOW BACK TO WORK, THEY WOULD LIKE TO GET THAT REDONE AND OF COURSE, THEY WANT MORE VACATION TIME AND MORE SICK DAYS.>>THERE HAS BEEN 10,000 PEOPLE LAID OFF AT U.S. PARTS SUPPLIERS AS A RESULT OF THIS STRIKE, AND NOW THERE’S WORD THE 2020 CORVETTE STING RAY COULD ALSO BE DELAYED AS A RESULT. ARE THE UNIONS IN EFFECT KIND OF KILLING THE GOOSE HERE? ARE THEIR DEMANDS MAKING IT IMPOSSIBLE AND HURTING THE COMPANY THAT THEY SUPPOSEDLY WANT TO HELP? THEY KILLING THE GOOSE HERE?>>I AGREE WITH YOU, BECAUSE THE NUMBER ONE SELLING VEHICLE IS THE TRUCK, SILVERADO, AND THEY’VE GOT A TRUCK SALE GOING ON RIGHT NOW, WITH AS MUCH AS $10,000 ON THE HOOD OR DON’T PAY FOR 90 DAYS, THEY ARE DOING EVERYTHING THEY CAN TO SELL VEHICLES BUT THEY HAVE ONLY GOT A 90-DAY SUPPLY WHEN THEY WENT ON STRIKE. SO WITHIN TWO WEEKS THEY WILL BE HURTING THE GOLDEN GOOSE AND THE CORVETTE, THEY ALREADY HAVE 37,000 RESERVATIONS. I SAW THE CONVERTIBLE, I’M DRIVING THE NEW CORVETTE TOMORROW, SO I’M A LITTLE CONCERNED THAT IF THEY CAN’T GET IT TO MARKET.>>DO YOU THINK THAT JOB SECURITY IS, AS ONE OF THE LOCAL PAPERS IS TALKING ABOUT, THE MAJOR STICKING POINT, THAT THE UNION WANTS GM TO PROMISE IN EFFECT THAT THERE ARE GOING TO BE NO MORE PLAYOFFS IN THE UNITED STATES AND SECONDARILY, DOES THAT TIE INTO THE UNION CORRUPTION PROBLEMS AND THE FACT THAT THEY KIND OF HAVE TO PROVE TO THEIR MEMBERS THAT YEAH, THEY MAY BE CORRUPT BUT THEY ARE ALSO REALLY WORKING ON BEHALF OF THEM?>>YOU GOT IT RIGHT ON, ACTUALLY. THE UNION PART, WITH THE CORRUPTION GOING ON, THEY HAVE TO PROVE THEY ARE DOING THE JOB AND HELPING THE EMPLOYEES KEEP THEIR JOBS. BUT NO ONE CAN PREDICT WHAT THE FUTURE OF THE AUTO INDUSTRY IS BECAUSE THEY ARE SAYING WE WILL HAVE ALL THESE ELECTRIC CARS AND THESE AUTONOMOUS CARS. THAT WOULD NOT HELP BECAUSE IT MEANS PEOPLE WON’T OWN VEHICLES IN MANY CASES. I THINK THEY REALLY NEED TO THINK ABOUT THIS. YOU CAN’T GUARANTEE THAT THERE’S NOT GOING TO BE ANY MORE LAYOFFS. I DON’T THINK ANY COMPANY CAN GUARANTEE THAT.>>GARY KALTBAUM. I THOUGHT THIS WOULD BE OVER AFTER TEN DAYS, BECAUSE MONEY USUALLY TALKS, BUT OBVIOUSLY, NOT ENOUGH. MY BIG WORRY NOW, AS YOU SAID, INVENTORY’S GOING TO START RUNNING LOW IN THE COMING WEEKS, AND IF THEY DON’T HAVE ANYTHING TO REPLENISH, THAT IS A PROBLEM. THAT BIG SALES DROP, BIG EARNINGS DROP, BIG ECONOMY DROP, AT WHAT POINT IN TIME, DO YOU THINK WE ARE GETTING CLOSE BECAUSE WE’RE HEARING WE’RE AT THE WORST PLACE RIGHT NOW BECAUSE THERE’S GOING TO BE NOTHING BUT PAIN IF THIS CONTINUES THE NEXT TWO OR THREE WEEKS.>>I THINK THEY’VE GOT ABOUT TWO WEEKS UNTIL THEY’RE IN TROUBLE. AFTER THAT, RIGHT NOW IF YOU ARE LOOKING TO PURCHASE A SILVERADO TRUCK AND WANT IT CUSTOM ORDERED A CERTAIN WAY, YOU CAN’T ORDER IT. YOU HAVE TO GET IT FROM ANOTHER DEALER. THEY ARE RUNNING OUT OF INVENTORY. DEALERS ARE HOLDING ON TO WHAT THEY HAVE BECAUSE THAT’S THEIR CASH COW. IT IS BECOMING A PROBLEM. YOU DON’T WANT CONSUMERS TO GO TO RAM OR F SERIES PICKUP TRUCKS BECAUSE FORD AND RAM ARE DOING EVERYTHING THEY CAN TO TAKE AWAY THOSE CUSTOMERS. THAT WILL HURT GM, IT WILL HURT OBVIOUSLY THE LABORERS, IT WILL HURT THE COMPANY AND HURT THE STOCK. I THINK REALLY, IN THE BIG PICTURE, THEY NEED TO GET THIS RESOLVED. GM KEEPS PUTTING GOOD OFFERS OUT. UAW SAYS NO, UAW GIVES THEM A GOOD OFFER, GM SAYS NO. THEY EVEN WANT TO DO A NO-CONFIDENCE VOTE FOR MARY BARRA WHICH IS ABSURD BECAUSE IT’S NOT GOING TO CAUSE HER TO STEP DOWN. IT’S JUST MORE DRAMA. DAVID: BY THE WAY, WE ALL ENVY YOU DRIVING THE STING RAY TOMORROW.

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