I don't know enough about the GS strike to be able to comment about the specific issues involved. One thing I do know is that the cost of heath care continues to rise faster than the cost of just about anything else in the US (the reason for that could be the topic of another thread) and GM's profits are certainly not increasing at the same rate.
There are always two possible avenues in these situations: cut expenses and increase profits. Some possibilities for the former include decreasing the overall cost of health care for employees and retirees...and I expect the the hated middle managers would end up with theirs cut at least as much as the line employees'...,reducing the number of employees at all levels, and reducing salaries. I won't disagree that the rates of pay, including non-salary compensation, for top executives in private industry is obscene. I can't really speak to the issue of whether or not the number of middle-level managers in GM is appropriate. Having been one (in the Federal government), and having seen the way that most organizations have ruthlessly pruned their numbers over the past 15 years or so, I'm inclined to question the contention that their ranks are all that bloated.
One possible way to increase profits would be for GM - and the other US auto manufacturers - to start selling the same cars here as they do overseas. According to Bloomberg.com , the company's sales and profits are increasing rapidly outside of North America. Who wants to buy a contemporary GM vehicle unless you are a big truck freak (or need one for business)? The "little" Hummer (a tricked out Colorado pickup) starts at $30,000+!! I replaced my Chevy Blazer with a Subaru Forester this year, because GM discontinued the Blazer (and its clones), which were already too big, and replaced it with the TrailBlazer, which is even bigger with worse gas mileage.