A serious situation for Michigan

I can only hope that this will be short-lived. If they strike for more than maybe a week, I don't think that GM will recover. Imagine the effects to the state if the union causes GM to fold...it's a staggering though...

Union sets strike deadline at GM
CNN

NEW YORK (CNNMoney.com) - The United Auto Workers union set an 11 a.m. ET Monday strike deadline for its 73,000 members at General Motors late Sunday night, although talks between the union and the company were still ongoing.

The union has kept its members on the job at the automaker on an hour-by-hour contract extension since the previous pact with GM expired Sept. 14. But Sunday, as talks were reportedly making progress, the union leadership felt the need to call for a strike.

The company said in a statement that it was still hopeful of reaching a deal to avoid a shutdown. A company official told CNNMoney.com at 5:20 a.m. ET that the talks were still continuing.

"The 2007 contract talks involved complex, difficult issues that affect the job security of our U.S. work force and the long-term viability of our company," said GM spokesman Dan Flores. "We are fully committed to working with the UAW to develop situations together to address the competitive challenges facing General Motors. We will continue focusing our efforts on reaching an agreement as soon as possible."

Shares of GM were up 0.4 percent in light trading in Franfurt early Monday on news of the strike deadline.

The strike call does not affect operations at Ford Motor or Chrysler Group. The union has granted these companies more formal extensions that require a three-day notice to end while they focused their efforts on reaching an agreement with GM.

Neither side would comment on the sticking point in the talks, although GM has been seeking to close its cost gap with nonunion automakers such as Toyota Motor and Honda Motor by shifting $51 billion in future retiree health care costs to a union-controlled trust fund.