GM Workers Play Hardball

Updated from 2:34 p.m. EDT

Workers at General Motors (GM Quote) plants across the country walked off the job Monday, marking the first time since 1970 that a contract breakdown has led to a nationwide strike at the world's largest automaker.

After the United Auto Workers extended marathon negotiations with GM past the earlier Sept. 14 deadline, the union set a firm deadline late Sunday for Monday at 11 a.m. EDT. When the time came and no deal had been reached, the UAW declared a strike and workers left their posts, crippling the automaker's production lines in North America.

GM gave back its early gains after the strike began, but investors were able to take heart that the company was not flinching from its mission to reduce its bloated cost structure in a way that will make it more competitive with lower-cost, foreign-based competitors, like Toyota (TM Quote).

Shares of GM eased 20 cents, or 0.6%, to $34.74. Ford (F Quote), the No. 2 U.S. automaker, was up 25 cents, or 3%, to $8.48.

"We were disappointed to find out that this was going to be a one-way negotiation," said UAW president Ron Gettelfinger at a news conference after the strike began. "It was going to be GM's way at the expense of the workers. The company walked right up to the deadline like they really didn't care."

He said the parties were headed back to the bargaining table on Monday afternoon, but "with the frame of mind we're in right now, we expect the company would move rather expeditiously on the open issues that are in front of us."

A spokesman for Ford refused to comment on labor negotiations, while Mike Aberlich, a spokesman at Chrysler, said there were no work stoppages at his company. The UAW represents roughly 73,000 U.S. workers at GM facilities, and the walk-out was taking place at all 80 of the company's domestic auto plants.