UAW, Big Three Discuss Parts Outsourcing

09/10/96

As the United Auto Workers union and Detroit's Big Three Carmakers bargain to replace their current three year contract--which expires on September 14--the New York Times has reported that the carmakers and the workers are discussing a proposal to resolve their dispute over outsourcing auto parts.

The newspaper cited people close to the bargaining talks as saying that the proposal first came from carmakers, and that Ford Motor Company has shown a particular interest in resolving the issue.

The proposal calls for big concessions from both sides of this contentious issue. In the past, both sides have resisted such concessions. The new proposal calls for the automakers to maintain their unionized work force pretty much where it is now for the duration of the new contract. In exchange, the carmakers want the union to let them pay permanently lower wages in any new auto-parts businesses they enter.

Paul Dever -- The Auto Channel