GM Crossovers Soon Resume Production and Settles With CAW
May 15, 2008
By Michelle Krebs
It looks like General Motors soon will resume production of its hot-selling Buick Enclave, Saturn Outlook and GMC Acadia crossovers as well as launch its new Chevrolet Traverse now that the union members who build those vehicles have settled their month-long strike with the automaker.Early Thursday morning, GM announced it had reached an agreement with UAW Local 602, which represents the 3,300 workers at GM's Delta Township, Mich., plant who build the crossovers. Officially workers will remain on strike until they ratify the contract; it was unclear Thursday morning when that vote might be taken.
Also on Thursday morning, the Canadian Auto Workers union (CAW) announced it had reached a tentative agreement for a national contract with GM. The CAW also reached a tentative agreement Chrysler Thursday.
And GM averted a strike with one of its locals in Ohio.
GM Crossovers In Short Supply
GM is eager to resume production of its popular crossovers as high demand, especially for the Enclave and Outlook, and the strike have left the automaker and its dealers with very limited supplies of the vehicles.
Edmunds.com's analysis shows the Enclave is at a scant 27 days to turn -- the number of days from a vehicle arriving at a dealership to it being driven away by its new owner. Though on sale for a year, the Enclave has never had more than 30 days to turn when the norm is about double that.
The GMC Acadia has a 36 days-to-turn rate; it has never had more than 40. The Saturn Outlook has the best suppliers at 72 days-to-turn.
GM's settlement with Delta Township, Mich., workers comes a day after GM appeared to be playing hardball with the union, announcing it would end health-care benefits for the striking workers.
In addition, the workers' strike likely - though unofficially -- be tied to a strike by workers at supplier American Axle and Manufacturing Holdings Inc., where workers walked off the job in Feb. 26 protesting the company's proposed slashing of hourly wages. Workers at some GM plants have gone on strike or threatened in sympathy of their UAW brothers and sisters at American Axle, industry observers believe. American Axle was formed by spinning of former GM operations and GM remains American Axle's No. 1 customer. Last week, GM announced it would toss $200 million in to the kitty in hopes of settling the American Axle strike.
And it appeared over the weekend that the American Axle strike was about to be settled, but it looks like a setback has occurred. The union is protesting a last-minute proposal by the company to close another plant, one the union claims it hadn't expected.
GM-Ohio Strike Averted
At the same time, GM workers at a Mansfield, Ohio, stamping plant threatened to go on strike this week, but quickly withdrew their threat, perhaps because of GM's threatened cut-off of health care benefits to the Delta Township, Mich., workers or an imminent settlement of the American Axle strike.
GM - as well as Ford and the UAW reached a national contract agreement last fall, but local unions negotiate their own work rules and other issues.
GM, Chrysler Settles with CAW
Across the border, the CAW reached tentative agreements for a national contract with GM and Chrysler. CAW President Buzz Hargrove told the media Thursday that the GM and Chrysler agreement maintain the pattern set by Ford earlier this month.
Though none of the contracts with Detroit's Big Three and the CAW expire until September, Ford was first to settle with the CAW. The Ford agreement requires union members relinquish a week's worth of vacation in return for a $3,500 cash payment in January 2009, a $2,200 bonus upon ratification, improved buyout benefits and some pension increases. It does not include a two-tier wage structure like the one negotiated with Detroit's Big Three last fall with the UAW but it does allow new hires to start at 70 percent of base wages during the first three years of employment and then climbing over three years to full wages. The Ford contract also requires Ford keep its St. Thomas assembly plant open longer - through 2011.
Hargrove confirmed to the media that the GM and Chrysler agreements protect jobs and protect workers who will lose their jobs due to plant closings. For instance, GM and the CAW have agreed to terms for workers at the Windsor, Ont., transmission plant, which GM just announced would close in 2010.
However, other details of the proposed contracts with GM and Chrysler have not been revealed yet.
Posted by Michelle Krebs at 6:48 AM under Chrysler , Companies , Ford , GM | Comments (0) | digg this | Seed Newsvine
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