It's impossible to attribute all of GM's wage woes to current payroll. The real cause of the problem is retiree benefits. GM, unlike most of their foreign competitors building cars with American Workers, is required to pay health benefits for life. This includes workers that theoretically retired 10, 20 maybe thirty years ago.
I live near the Fort Wayne Silverado plant and this morning's news said that GM was willing to move the $51 Billion Dollar retiree benefit program over to UAW in an effort to save $3 Billion per year.
The issues facing GM and the UAW are for more complex than 100,000 mile waranties. Many of the problems today are the result of the strong automotive economy of the 1960's and the bargaining practices of the past.
GM's competitors are relatively new in the game (building cars in the USA) and in many cases are non-union or at worst case, union with modern bargaining practices that don't offer things like retiree benefits.
It's a sad day in Northeast Indiana because nobody wins in a strike.
Just an experienced outsider's look in,
Ed
