At the time of the 2007 strike, the 73,000 workers at GM are far lower than the 400,000 workers GM employed when the UAW last went on strike in 1970.

The number of UAW members at GM has also steadily decreased as the company downsized. These costs can be attributed to worker pensions and healthcare programs the unions have negotiated.

While many of the foreign manufacturers pay less in wages as most of their plants are not a part of a union, GM's labor contracts increase its costs per car by an estimated $2000 impacting its competitiveness. Part of GM's struggles has been its relatively high costs of production. GM's foreign competitors Nissan, Honda, and Toyota increased their production within the United States. Foreign players secured over 50% of market share for the first time in history in July 2007. GM's market share had been steadily decreasing as foreign automakers entered the market. The automobile industry landscape in 2007 was drastically different to what it once was. The UAW previously went on strike against General Motors in 1970.īackground GM's Chevrolet plant in 1973 After the two day strike, the two parties reached an agreement in which the UAW union would assume the responsibility for managing retiree healthcare liabilities. Consequently, 73,000 workers walked out forcing 80 GM facilities in 30 states to cease operations. The UAW were engaged in talks with General Motors (GM) to negotiate a new labor contract but were unable to come to an agreement before the deadline. The 2007 General Motors Strike was a labor union strike that lasted three days from September 23 to September 25 of 2007 organized by the United Auto Workers (UAW) union.

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