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Day 2 of UAW strike: Still plenty of contract to negotiate

Workers went on strike just after midnight on Sunday, the contract talks extended late into Monday afternoon.

Contract talks aimed at ending a strike by 49,000 auto workers against General Motors have extended into late Monday afternoon.

United Auto Workers spokesman Brian Rothenberg says he hasn't received any report about whether negotiators are making progress.

Earlier he said both sides had agreed on about 2% of the contract language, leaving 98% left to negotiate.

Talks broke off during the weekend but resumed at 10 a.m. Monday.

Workers went on strike just after midnight on Sunday, bringing more than 50 GM factories and parts warehouses in the U.S. to a standstill.

Here are the main areas of disagreement:

  • GM is making big money, $8 billion last year alone, and workers want a bigger slice. The union wants annual pay raises to guard against an economic downturn, but the company wants to pay lump sums tied to earnings. Automakers don't want higher fixed costs.
  • The union also wants new products for the four factories slated to close. GM currently has too much U.S. factory capacity, especially to build slower-selling cars.
  • The companies want to close the labor cost gap with workers at plants run by foreign automakers. GM pays $63 per hour in wages and benefits compared with $50 at the foreign-owned factories. GM's gap is the largest at $13 per hour, according to figures from the Center for Automotive Research.
  • Union members have great health insurance plans and workers pay about 4% of the cost. Employees at large firms nationwide pay about 34%, according to the Kaiser Family Foundation. Automakers would like to cut costs.

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