GM Boss Says Spring Labor Conflict Will Help Bargaining Talks

08/05/96

Reuters reported that GM Chairman and Chief Executive Officer John Smith said that his corporation learned a few things during the 17 day UAW strike at two Delphi Division plants near Dayton, OH this past March. Smith said he expects that issues aired during that conflict will help the two sides iron out differences in contract talks this summer. He believes that the corporation and the union will be able to avert another work stoppage as bargaining proceeds between now and September.

"We got into some issues and I think we settled some things for the future that are important," Smith told reporters.

The workers in the Dayton brake plants struck because of GM's plans to shift work to outside suppliers, and because GM reneged on previous work commitments for the plants. The strike was settled after GM agreed to add permanent jobs and make lump-sum payments to workers. For their part, the corporation retained the right to outsource some work; the agreement was heralded as a victory for both sides.

Smith said that current contract negotiations between GM and the UAW were "about where you'd expect things to be at this point." The three-year agreement between the UAW and Detroit's Big Three automakers expires September 14.

Paul Dever -- The Auto Channel