Talks between the CEO of General Motors, Rick Wagoner, and president of the United Auto Workers (UAW) failed yesterday with the result that all 73,000 US workers went on strike.It’s said that the strike is with regard to a four-year labour contract that was under discussion, but the talks were also intended to produce a solution to GM's crippling labour and health care costs. Job cuts have always been a part of this plan. The strikes may well have the knock-on effect of forcing the 80,000 Canadian workers to stop work, as they rely on parts from North America. This is the first time since 1976 that UAW has staged a national walk out in the US, and it's estimated that the cost to GM will exceed £8.2bn. A huge blow to the company, considering the bill for healthcare alone is currently standing at £27.2bn. GM and UAW re-convene today, but the workers remain on strike until the two parties come to an agreement.
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