GM/UAW concession talks commence

Michael Harley — Tue, 06 Jan 2009 16:33:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, GM, UAW/Unions

To ensure long-term viability, General Motors has pledged an arm and a leg (and maybe an eye) to satisfy conditions imposed by the federal government after the automaker received billions in taxpayer-funded loans. In addition to reducing debt and condensing the number and type of vehicles it produces, GM has promised to revamp labor contracts -- not an easy task. With that in mind, GM is entering historic talks and negotiations this week with the United Auto Workers, bondholders, dealers and others to help transform the automaker into a lean and profitable company.

It's a monumental task, but GM needs to undertake serious financial concessions to implement their restructuring plans. These include eliminating up to 31,000 jobs, closing down nine assembly plants, shutting 1,750 dealerships, and possibly eliminating the Saturn brand. Of course, they also have to renegotiate the 2007 UAW labor contract with GM. The UAW has resisted wage and benefit cuts, but without union compromise GM could be forced to file bankruptcy... something none of the players wants to see happen.

[Source: Detroit News]

GM/UAW concession talks commence originally appeared on Autoblog on Tue, 06 Jan 2009 16:33:00 EST. Please see our terms for use of feeds.

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UAW strikes again! Targets American Axle after talks end

Michael Harley — Tue, 26 Feb 2008 16:31:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, GM, UAW/Unions

In a move that may threaten production at General Motors, the United Auto Workers union went on strike against American Axle & Manufacturing Holdings Inc. earlier today. The UAW work stoppage, the third called by the union within the past six months, centered around wages, benefits, and concerns that the company may be moving production to Mexico.

American Axle is the sole axle supplier to GM for light trucks such as the Chevrolet Tahoe and GMC Yukon. The company supplies axles, shafts, and related components to other automakers, as well. As the four-year contract with the UAW neared the end of its term and the strike loomed, American Axle did stockpile its inventory. It is unclear, however, just how much supply is on hand. It may not need to last long, as analysts expect a negotiated settlement to end the strike within several days. This is good news for everyone, especially the workers who are walking the picket lines outside in the freezing snow.

[Source: Automotive News, subs. req'd, Photo by Bill Pugliano/Getty]

UAW strikes again! Targets American Axle after talks end originally appeared on Autoblog on Tue, 26 Feb 2008 16:31:00 EST. Please see our terms for use of feeds.

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