Latest Strikes Signal Growing Labor Unrest Confrontations Could Disrupt Industrial Operations, Trim Profits

Worker unrest is spreading in the nation’s manufacturing sector, and labor analysts say it could mark the beginning of a series of confrontations that could disrupt the nation’s vibrant industrial operations and cut into robust profits.

More than 47,000 workers at General Motors, Chrysler and Goodyear have hit the streets in recent days, demonstrating a renewed willingness to strike over jobs in the face of near-record earnings reports and soaring executive pay.

The latest walkout occurred at midnight Tuesday when 5,900 auto workers walked out of a GM truck assembly and nearby parts plants in Pontiac, Mich., in a local contract dispute over factory staffing levels.

They join 3,500 GM workers in Oklahoma City who have been on the picket line since April 4. An additional 23,700 union workers have been idled at 19 plants, mostly in the Midwest, by a strike against Chrysler Corp., and 14,300 union members are on strike at 10 Goodyear Tire & Rubber Co. tire plants in seven states.

The labor disputes are being played out against a backdrop of rising union militancy as rank-and-file workers grow restive over what they see as meager wage and benefit gains after years of sacrifice. Meanwhile, management shows increased willingness to take strikes.

“These will not be the last strikes we see in the manufacturing industries,” said Harley Shaiken, a labor professor at University of California, Berkeley.

“This is indicative of … a build-up of resentment by people who have been working mad or working scared,” said Dale Brickner, a labor professor at Michigan State University.

Organized labor, under the direction of the AFL-CIO, has been promising a new aggressiveness and a renaissance. Major unions, such as the United Auto Workers and the United Steelworkers of America, are increasing organizing efforts and pooling resources for lobbying and research.

But the unions, whose ranks have been cut by a decade of corporate restructuring and downsizing, face an uphill battle. There is continuing pressure on companies to cut costs and become globally competitive.

In fact, the willingness of these major companies to take strikes rather than give in to union pressure has been applauded on Wall Street. GM’s and Chrysler’s stock prices have gone up since the strikes began, even though second-quarter profits will suffer as high-profit products are not built.

“It’s pretty clear that management is not rolling over this time,” said David Cole, executive director of the University of Michigan’s auto transportation office. “They are taking short-term pain for longterm gain.”