The United Auto Workers union said Tuesday it had no
plans to negotiate any new concesssions with GM. The union applauded GM’s move to cut dividends and exec salaries, but
UAW President Ron Gettelfinger indicated that the union had already made its contribution to GM’s recovery, saying,
“We did our negotiations last year, and that’s the end of that.”
GM has not asked recently for new
cost savings from the union, but chairman and CEO Rick Wagoner has stated that labor costs are a major issue for the
automaker.
As expected, Wall Street reacted negatively to the dividend cut, with some investors feeling that
the remaining dividend was insufficient compensation for the risks inherent in owning the stock. Check out in-depth
analysis of the reaction to GM’s moves here
and here.