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

Source:  financialpost.com

Link: https://business.financialpost.com/transportation/autos/gm-uaw-hammer-out-details-as-signs-suggest-agreement-near?video_autoplay=true

Discussion points: 

 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?