GM Strike

03/07/96

Reuters reported that 3,000 workers (UAW Local 696) are on strike at two brake manufacturing plants in Dayton, OH. The two stopped plants produce brakes for most of GM's North American-built vehicles, and the strike could halt production at other plants. When Local 696 went out on a 4 day strike in 1994, GM had to halt production at 6 different plants. The union called the strike after negotiations failed to resolve a dispute that involves staffing levels and "out-sourcing," which is the practice of shifting production of automobile components out of GM plants or out of the country.

The union points out that GM never lived up to the promises it made to settle the 1994 dispute, when it agreed to drop plans to buy brake components from Australia, to bring 323 new jobs into the plant, and to invest $160 million in the facilities.

GM has stated that that any settlement should not jeopardize the competitiveness of the plant. GM, America's number one automaker, has settled other disputes and strikes that arose around the issues of shifting work to outside suppliers by agreeing to keep work in house.

UAW's three-year contract is up for negotiation this year, and the union is expected to push for tough restrictions on out-sourcing as it begins bargaining with Detroit's big three automakers.

Paul Dever -- The Auto Channel