Tri-City Sun

As the ongoing labor dispute between General Motors (GM) and the United Auto Workers (UAW) lingers, families of picketing employees are suffering the consequences.

Strikers are receiving some money but it’s more of a token income than a substantive one.

“So far, the only impact has been on the families of union members on strike,” wrote State Rep. Jim Lower (R-Greenville) in an email to the Tri-City Sun. “I'm sure they are having a hard time surviving on $250 a week.”

Rep. Jim Lower (R-Greenville)

The UAW recently sanctioned a 10 percent increase in pay for striking members from its strike fund but that amounts to only a $25 increase. Striking UAW members are permitted to work a part-time job without any penalties to their strike pay as long as they fulfill their picket line obligations, reported USA Today.    

The strike fund had consisted of approximately $800 million, but Fox Business calculates that it’s less than $754 million after paying out $11.5 million weekly during the past four weeks. With the approved increase, it is set to be depleted by $12 million per week.

The Detroit Free Press indicated that GM has estimated its losses at nearly $1 billion since the roughly 46,000 workers walked out last month.

One of UAW’s major issues with GM is the guarantee that the automaker will produce gasoline-powered vehicles in American plants, but GM workers in Mexico receive an entry-level wage of $1.90 per hour whereas workers in the U.S. start at $17, the Detroit Free Press also reported. The newspaper said GM has stated it needs to build some vehicles in Mexico to be competitive.

While the federal government could intervene in the contestation, Michigan’s center of attention is on public entities.  

“Most of the reforms we are focused on center around public debt held in the form of retirement health care and pension unfunded liabilities,” Lower wrote. “These reforms would not have an impact on private unions or businesses.” 

General Motors operates the Flint Truck Assembly factory in Flint and Powertrain plants in Flint, Bay City and Saginaw.