AFSCME 3357-HOF'S BLOG

How Long can the Strike Last?

I've had several people email me and ask me how long the UAW-GM strike will last. I'm guessing it'll last a week. Here's what the Detroit Free Press says about how long it could last.

Analysts and labor experts said the automaker and the UAW could manage a short
labor stoppage without much trouble. GM has enough cash and inventory to manage
a strike of a few weeks to a couple of months. The UAW had more than $800
million in its strike fund as of November -- enough, in theory, to strike GM for
a year.

Here's what the same article has to say about the costs of a longer term strike:

Although both parties said they desire a prompt resolution of the issues,
analysts said they have a little time before the matter becomes truly
detrimental.
GM has 111 days of inventory to sustain dealers, according to
estimates by Lehman Brothers analyst Brian Johnson.
A short strike might cost
GM less than $1 billion, but a two-month strike easily could cost $15 billion,
he said.
"GM was facing the need, we believe, to cut production by about 15
days of production closure -- making a two-week strike actually, ironically, a
lower-cost way to adjust inventory," he said.

The union members will receive $200 per week in strike pay after 8 days. I haven't heard anything about whether there as even been any discussion on whether to continue legal services coverage in the new contract. It would be ironic if they had a long strike, ended up with lower pay and no UAW-LSP coverage to fight bill collectors for them and file their bankruptcies.