UAW locals threaten strikes at GM Plant
United Auto Workers threatened to strike at five General Motors (GM) plants across the United States. This move adds to the woes of an already crippled GM, after a strike at one of their suppliers American Axle & Manufacturing Holdings Inc. (AXL). Last year, GM reached a four-year national contract with the UAW. However, till now the GM management has not reached an agreement with more than 70 union locals on issues such as ‘work rules’.
UAW locals from Arlington,Texas; Delta Township, Michigan; Warren, Michigan; Parma, Ohio; and Flint, Michigan intend to issue GM a five-day strike notice if progress isn’t made on local issues. GM, despite of reaching on a national deal with the UAW on issues such as wages and benefits will have to negotiate further with the locals on issues such as work rules and seniority.
GM spokesperson Dan Flores said, “ We remain committed to continue bargaining in good faith towards reaching a tentative local labor agreement as soon as possible. However, we are not going to publicly discuss the issues.”
The Delta Township plant at Michigan, which was the first to be served the notice by UAW produces the widely sold, large crossover utility vehicles: GMC Acadia, Buick Enclave and Saturn Outlook.
One of the points that GM doesn’t have to worry about is the lower-tier wage. General Motors reached a deal with the UAW on the specific jobs at each plant where GM can hire a new worker at a lower wage.
Compared to the old contract, GM can now hire workers for non-assembly plants at a total level of wages and benefits of $25.65 an hour, where previously it was $78 an hour on an average.
GM has offered buyouts to all of its roughly 77,000 UAW-represented workers to cut costs and make room for the lower-cost new hires. However, according to union officials fewer people are accepting the payouts and early retirement offers, unlike last year, when some 34,000 people opted to get off the payroll.
According to Dan Flores, a part of the manufacturing plant at Flint, Michigan that makes full-size pickup trucks, has been idled by the American Axle strike which began on February 26.
GM’s assembly plant at Arlington, Texas has already been hit hard by the ongoing American Axle strike. This plant produces full-size SUVs such as the Chevrolet Tahoe.
About 3,650 UAW-represented workers at American Axle remain on strike in a separate dispute that has crippled 30 GM facilities in North America.
