"This agreement helps us close the fundamental competitive gaps that exist in our business,’ said GM Chairman/CEO Rick Wagoner. "The projected competitive improvements in this agreement will allow us to maintain a strong manufacturing presence in the United States along with significant future investments." The tentative agreement brings a relatively rapid end to a two-day strike in what Wagoner said "…was one of the most complex and difficult bargaining sessions in the history of the GM/UAW relationship." A major agreement was reached on a health care trust for retirees that will be funded by GM and administered by the union. According to reports, pay and job security issues also figured in the agreement, although details were not made available.
RBR observation: With broadcasters already scrambling to make up revenue from sluggish automotive budgets, the last thing anybody needs is a protracted strike taking place at one of the pillars of the US economy. Here’s hoping that those future investments Wagoner was talking about include a significant advertising budget.