"GM pushes to settle strikes before summer shutdown ends"
(Recasts and updates with new quotes and more information)
By Ben Klayman
FLINT, Mich., July 9 (Reuters) - General Motors Corp.
is pressing to settle two parts plants strikes before
Monday so it can resume vehicle production at its assembly
plants, but a union vice president said he would be "shocked" if
the two sides could move that fast.
GM Vice President Gerald Knechtel said Thursday evening the
automaker "has a real need" to get the strikes in Flint, Mich.,
resolved before the end of the weekend.
"It's very important that we get it done by this weekend if
it's at all possible," Knechtel said outside a Holiday Inn in
Flint, where he has been meeting with United Auto Workers Vice
President Richard Shoemaker.
GM is scheduled to resume production at its plants on
Monday after a two-week model-changeover shutdown. Before the
shutdown, the strikes had closed 26 of the company's 29 North
American assembly plants and idled 161,000 non-striking workers.
The automaker said it has lost $1.18 billion because of the
strikes. That figure would rise quickly next week if the strikes
continue because the automaker would normally be resuming
production.
While Shoemaker said he would love to get the strikes at
Flint Metal Center and nearby Delphi East plant settled, he does
not think it will happen in time so GM can resume production on
Monday. He said it would take several days just to schedule and
hold a ratification vote on any agreements reached.
"Everybody would like to find an answer to this strike, but
I'd be absolutely amazed if it happens this weekend," said
Shoemaker, who added the two sides have no framework agreement as
was earlier stated by a UAW regional director.
He said there has been "painstakingly slow" progress in
negotiations at both plants, both of which were still underway at
6 p.m. EDT on Thursday. The high-level talks had recessed for the
day, but planned to meet again on Friday.
Shoemaker dismissed reports that broader national issues such
as the fate of GM subsidiary Delphi Automotive Systems are being
negotiated. He said only local issues at the two plants --
including production standards, health and safety, the
contracting out of work to independent suppliers and GM's broken
commitments -- were being discussed.
He said GM has not raised questions about closing parts
plants, but national issues like that are better left to next
year's national contract bargaining, he said.
While Shoemaker implied both sides have made compromises, he
said there are many significant issues to be resolved.
He said potential strikes at parts plants in Dayton, Ohio,
and Indianapolis shared many of the same issues being discussed
in Flint, but they would be resolved by negotiating teams in
those cities. A 17-day strike in 1996 at two brake plants in
Dayton cost GM $900 million.
Told of Shoemaker's doubts about a quick settlement,
Knechtel said, "Well then, I'm going to try to amaze him. There
is progress being made and we're going to keep working on it."
Knechtel declined to say whether GM asked the UAW for a
pledge not to strike other plants as part of any settlements in
the current negotiations.
Workers on the picket line outside Flint Metal Center
remained hopeful this weekend would bring a resolution.
"Everybody thought they'd be settled by the weekend," said
Mark Dye, a skilled tradesman at the stamping plant for the last
12 years. "They told us, when they 'turn the light on' at the
Holiday Inn, things will be settled in a hurry."
The automaker is scheduled to announce its financial
results for the second quarter on Tuesday and analysts are
getting impatient for a settlement so the financial bleeding can
be staunched.
"It's important for General Motors to get back to the
business of making cars and trucks," said Michael Robinet,
managing director of CSM Forecasting in Farmington Hills, Mich.
Even with a quick settlement, GM will lose production of
280,000 vehicles, more than half of which it may never recover,
he said. The automaker is losing market share it may find very
difficult to regain.
UAW's Shoemaker said any market share loss by GM would be
unfortunate, but added that the automaker has it in its power to
settle the strikes now.
GM has repeatedly said it may have to eliminate vehicle
models, assembly plants and jobs as a result of the damaging
strikes. Merrill Lynch & Co. Inc. analyst Nicholas Lobaccaro has
said the company needs to cut 45,000 jobs and close three
assembly plants, given its shrinking market share. |
