The Big Squeeze On Gm

Labor strife on two fronts could cost it billions--for no good reason

It's the strike that never should have happened. On one side, General Motors Corp. had every incentive to reach a compromise with the 26,000 members of the Canadian Auto Workers: In Canada, labor costs are about a third lower than in the U.S. And the country's more efficient plants raked in a record $1 billion in profits last year. On the other, the Canadian union faced the grim prospect of going into hock by blowing its entire strike fund in a lengthy walkout.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.