Striking employees costing GM $50-100M per day

Striking employees costing GM $50-100M per day

MEMPHIS, Tenn. (WMC) - General Motors said it will no longer pay for health care coverage as thousands of employees remain on strike.

Members of United Auto Workers said the strike will go on until contract negotiations are settled.

Sources close to GM said they are offering a two percent wage increase for the first and third years of workers' four-year contracts, and two percent lump sum payments for the second and fourth years.

Union members said that's not enough, especially after what they lost during the company's bankruptcy in 2009.

Healthcare is also a main sticking point of the strike.

Local economists predict the main outcome will be lower manufacturing production.

"You don’t need parts if in fact you're not producing cars," economist John Gnuschke said. "So the break down in the supply chain impacts a lot of companies, a lot of people in Tennessee."

The union temporarily increased dues in March to boost their strike fund to $850 million. That fund is paying striking workers $250 per week.

Analysts say the strike is costing GM about $50-100 million per day.

There are more than 142 local UAW workers striking since walking off the job on midnight Monday.

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