UAW Local 696: Strike Update

03/13/96

Both the Associated Press and Reuters reported that GM laid off more workers as the strike of UAW Local 696 went into its eighth day. Workers from the striking Local produce brakes for all of GM's North American Auto Assembly plants except for a Corvette plant in Bowling Green, Kentucky. Production at GM plants across the North America has halted as they run out of parts; the number of closed plants rose from 15 on Monday to 30 on Tuesday. The number of workers across the continent who are waiting for GM to talk to workers about their dispute grew to about 60,000. So far no formal talks aimed at resolving the strike have been scheduled.

The issue the striking employees want to discuss affects all GM workers, as it concerns GM's plans to buy parts from other sources and countries rather than investing in improving existing facilities or in augmenting an existing workforce. Last week officials from the striking Local pointed out that GM never lived up to promises it made to resolve a 1994 strike that lasted 4 days. In 1994 the company agreed to hire more workers, invest in facilities, and to drop plans to buy brake parts from Australia, rather than producing them in the Ohio plants.

One industry analyst said that the strike could cost GM $250,000,000 in lost production every week, but GM said it had plenty of cars to sell. Strong sales in February cut into the company's overstocks that have been reported, although the company still has a 79 day supply of trucks and an 82 day supply of cars on dealer lots. Manufacturers aim for a supply of 60 days worth of vehicles.

Paul Dever -- The Auto Channel