The United Auto Workers followed through on their threat to strike if a contract agreement with GM was not reached by Monday, putting GM's turnaround in jeopardy. Approximately 73,000 workers at 70 GM plants across the country downed tools after the breakdown of talks on a four-year contract. The talks had been extended on an hour-by-hour basis for a week following a September 14 deadline. Industry analysts suggest the strike is a means by which the union is showing resolve, and does not represent a disruption of the negotiating process. Indeed, union leaders plan to resume negotiations Tuesday. "This is a little bit of last-minute theater to get GM's attention and to get it to move off the dime," said Burnham 
Securities analyst David Healy. The WSJ estimates the strike could cost GM $100 million a day. "The bargaining involves complex, difficult issues that affect the job security of our U.S. workforce and the long-term viability of the company," GM said. UAW President Ron Gettelfinger said the breakdown was the result of an inability to resolve the question of job security in the event of plant shutdowns and GM's insistence on capping profit-sharing.
Sources: Financial Times, MarketWatch, Wall Street Journal, Bloomberg
Commentary: UAW Sets Monday Morning Deadline for GM Contract - WSJ • GM Presses UAW On Central Principles As Negotiations Intensify • Are GM Labor Concessions Built Into The Stock?
Stocks/ETFs to watch: GM. Competitors: F, TM, DAI. ETFs: PRFG, RPV
Earnings call transcript: General Motors Q2 2007
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