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54 Day Strike Ends With Agreement to Keep GM Plants Open

The 54 day strike at two GM plants in Flint, Michigan that idled 200,000 workers across North America ended with the United Autoworkers Union successfully getting an agreement that the two plants will remain open.

The dispute between the world’s largest auto manufacturer and UAW centred around company plans to close the two plants and re-open their operations in Mexico. The agreement effectively guarantees that the plants will continue to operate until at least the year 2000.

The agreement, which was ratified overwhelmingly by the two locals, also sets up a process for the corporation and the union to discuss issues and prevent future confrontations from happening.

Observors indicate the strike and final agreement were significant because they show that unions can save jobs and prevent some of the effects of globalization if they stand up and take action.

The agreement was hammered out during a marathon, weekend-long bargaining session. "The company just got more reasonable," said Richard Shoemaker, UAW’s chief negotiator. Shoemaker stated that mounting financial losses prompted GM to moderate its position. Reports have indicated that GM lost between $2 and $3 billion dollars during the strike.

The strike directly affected about 9,200 at the two Flint plants, but effectively shut down 27 of GM’s 29 plants in Canada and the U.S. About 25,000 workers in Canada were temporarily laid off during the strike.

Plant closures occurred around the continent as parts supplied by the two plants dried up. GM had attempted to continue production of the parts despite the strike, but CAW in Canada indicated it would refuse to assemble anything using the parts, rendering the strategy ineffective.

It is the second longest strike against GM in history. The longest was 67 days in 1970. The Flint strike actually occurred before the expiry of the collective agreement. GM planned to renege on a promise made in that agreement to modernize and upgrade the two plants, sparking the walkout.

The strike received widespread public support. UAW President Stephen Yokich thanked the public for "the overwhelming support given to the strikers from our membership, our communities and also people not associated with the brothers and sisters of the UAW."

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