Description: GM and the striking United Auto Workers seem to have reached a deal, ending the first strike against GM in over ten years. Financial analysts have estimated that the strike has cost GM roughly $2 billion. Getting the workers to ratify the agreements may prove challenging, with many of them upset that the automaker announced it would shutter four more plants in the United States.
Date: October 16, 2019
1) If you were a GM worker presented with this contract offer, what way would you vote?
2) How do you think accountants could be involved in calculating that figure of $2 billion in losses?
3) On page 15 of Wiley’s Managerial Accounting: Tools for Business Decision-Making is a discussion GM’s use of the theory of constraints to change operations in its plants. To what extent do you think this theory of constraints might impact labour relations?