Performance

The case is all about collective bargaining between GM motors and united auto workers.

A brief summary

GM dominated the US market till 1980.Suddenly its market share declined steadily after the entry of Japanese companies.GM faced issues regarding its products and marketing, with under fund liabilities, rising employee and retiree health care costs. In 2007 GM started a new labor contract with UAW, maked analyst feel GM survival. This was in the result of a collective bargaining process after a strike followed by the workers of the union named united auto workers (UAW) for providing health care benefits to the workers.

Problem identification-threats faced by GM by the Japanese competitors in the US market.

GM was facing heavy health care costs of the employees.

Issue related to the collective bargaining process of how it dealt with the UAW for its benefits to stay long in the market.

The starting of the strike and collective bargaining - GM was facing heavy health care costs as it was the largest provider of health care to its employees in the us. In the year 2004, GM spent us$5.1 billion as health care costs for its 1.1 million workers, retirees, and their family members.

GM has built a strong relationship with UAE.GM negotiated with the labor unions their for sustaining its business for the long run there.GM and UAE has negotiated with each other for reaching a tentative agreement in October 2005.

On September 24, 2007, the UAE called for a nation wide strike since the GM management had over looked the deadline set by it. Around 73000 workers went for a strike at 80 facilities at 30 locations.

On September 26, 2007, a tentative agreement was reached between GM and the UAW followed by a collective bargaining in which GM bargained with the union for forming a voluntary employee’s benefit association (VEBA) fund. Under the agreement, the UAE was entrusted with the responsibility of administering the health care benefits of the workers....