Press Release: Union Pressure Forces Ohio GM to Consider Closing
FOR IMMEDIATE RELEASE CONTACT: John Kartch
22 APRIL 2008 202-785-0266
Union Pressure Forces Ohio GM to Consider Closing
GM Michigan Could Follow Suit
Washington, D.C. — Today, the Alliance for Worker Freedom (AWF), a Washington, DC-based group that advocates for the protection of workers’ rights, opposed the recent strikes of the United Auto Workers (UAW) union, which has prompted General Motors—the world’s largest car manufacturing company—to consider shutting down several of its plants.
Last month GM considered shutting down an important Ohio plant, among many others, and the most recent UAW strike could result in the closing of the Michigan plant. According to AWF Policy Director Brian Johnson, “It is common sense. UAW needs to continue manufacturing products at the same level as before, otherwise they risk being the causal factor in losing up to 40,000 jobs for GM. This would be unacceptable and disastrous for both parties involved.”
GM’s problem is exacerbated by the weak economy and sharp rise in gas prices. GM stock is also down 1.4 percent.
Despite GM’s attitude toward the situation, Johnson is concerned about the strike. “It is a perfect example of what can happen when unions gain control over constitutive parts of their member’s lives, including full control over pension accounts,” says Johnson. “As a life lesson, companies and workers need to exercise caution because caving in to union demands is no way to live your life.”
About 3,650 UAW represented-workers have been on strike since the beginning of the year. GM estimates that about 3,300 hours of labor have been lost thus far in the strike. AWF is deeply concerned about the issue facing General Motors and will continue to monitor the activity of the UAW.