UAW OKs Deal to End Strike at GM Parts Plant
United Auto Workers approved a deal Sunday to end a six-day strike at a General Motors parts plant that forced four assembly plant shutdowns and threatened the Detroit auto maker’s entire North American production.
About 2,800 union employees went on strike Tuesday at the GM Powertrain Group plant in Warren, Mich., which makes front-drive transmissions, wheels and suspension parts for many GM cars and trucks.
Two days after a tentative contract agreement was reached, the pact was approved by 89.4% of the 1,082 workers who voted, the UAW said. Production at the Warren plant was to resume Sunday night.
“We’re elated; we think that the membership is happy with what they saw and the vote total indicated that,” UAW Local 909 President Al Benchich said.
The strike had forced the shutdown of four assembly plants in Michigan and Canada by Friday. A total of 19,300 GM workers--including the strikers--were without work. GM spokeswoman Darla Park said the auto maker will probably not know until today when those four plants would reopen.
GM and the UAW have been at odds over the company’s decision to cut costs by trimming the work force through attrition--a factor in each of six strikes against GM this year.
One of the main issues in Warren was the company’s decision to transfer production of car and truck wheels to an independent supplier, a practice known as outsourcing. Few auto makers still make their own wheels, which can be bought cheaper from suppliers.
Under the agreement, GM will hire 420 new employees at the Warren plant, according to a summary prepared by the local and distributed to workers.
In addition, GM agreed to pay $550 to each worker on the payroll before July 14 to settle grievances over outsourcing, the summary said. The company is paying more than $2 million to settle various grievances, Benchich said.
The Warren plant will continue making wheels through at least 2002. Employees in wheel assembly also have their jobs guaranteed if work is shifted elsewhere or phased out.
Many workers said they believe the union wrested substantial gains from GM.
“It looks like we got a decent one this time,” wheel assembler Michael Steahl said. “Management’s been stepping on us.”
But the contract also left some workers feeling unsatisfied.
“They’re going to buy us some hand lotion for the break area. Big deal. How about some job security?” said worker Larry Lawhorn. “This is all just a dog-and-pony show if you ask me.”
The risks were high if the strike was not settled quickly. Tens of thousands of additional GM assembly workers throughout North America could have found themselves without paychecks within two or three weeks. Only GM’s Saturn plant in Tennessee does not use parts supplied by Warren.
The Warren plant had been without a local contract since September.