Collaboration Among Business, Labor And Public Sectors Created Foundation For Lansing Grand River Assembly Plant
FOR RELEASE: January 9, 2002Collaboration Among Business, Labor And Public Sectors Created Foundation For Lansing Grand River Assembly Plant
Lansing, Mich. - An unprecedented collaboration among union, management, government and the community created the foundation for the all-new General Motors (GM) Lansing Grand River (LGR) Assembly plant. The $559-million plant will employ about 1,500 people and build approximately 130,000 vehicles a year when it reaches full two-shift production. LGR currently produces the new Cadillac CTS luxury sport sedan and will eventually build other luxury vehicles.
The cooperation included a key labor agreement between GM and United Auto Workers (UAW) Local 652, plus efforts by the State of Michigan, the City of Lansing and other local governmental units to provide a supportive economic climate.
"Lansing Grand River shows that everyone benefits when business, labor and the public sector pull together to be competitive," said Gary Cowger, president of GM North America. "GM, like other automakers, faces increasing global competitive pressures to provide high-quality products at affordable prices. LGR was made possible by the willingness of all parties to work together to construct a plant that can compete at a world-class level."
Key labor agreement
Cowger said the labor agreement between GM and the UAW Local 652 allows for advanced manufacturing and assembly techniques and competitive work practices. "A key element of the agreement enables us to establish a team structure that plays an essential role in managing safety, quality and cost," Cowger said.
Art Baker, chairman of the UAW Local 652 shop committee, said, "GM and the UAW Local 652 have a mutually-beneficial labor agreement for the Lansing Grand River assembly plant, and have long had a strong business relationship.
Baker said LGR is playing a leadership role for both GM and the UAW in terms of delivering world-class quality products, cost effectiveness, job security and ergonomics. "We think the fact that we have a lot of experienced workers with excellent work ethics was an important factor in making Lansing home to this new plant. With the implementation of the teamwork approach - allowing workers input into processes - there is a new perspective among our people. They are proud to be empowered to play such a role."
Strong economic climate
More than a century of excellent relations between GM and the City of Lansing started when Ransom Olds began building Oldsmobiles in 1897. "The State of Michigan and the City of Lansing have been tireless in their efforts to provide a strong economic climate, support workforce development and strengthen the educational system - all factors critical to the competitive position of the community and GM," said Cowger. "As a result, Lansing Grand River continues Mid-Michigan's reputation for producing outstanding quality vehicles."
GM first approached the City of Lansing about locating a new vehicle assembly plant in 1996. A regional "Blue Ribbon Committee" - with government, business, labor, school, university and other community leaders - was formed to educate GM on the resources and qualities of Mid-Michigan, and to make Mid-Michigan aware of how important GM is to the region. GM has approximately 11,000 employees in the mid-Michigan region.
"The Blue Ribbon Committee hired a professional engineer to deal with the technical issues related to the new plant," said David Hollister, mayor of Lansing. "Using blueprints from GM plants in Brazil and Argentina, the engineer demonstrated convincingly how the new facility could be built on the existing plant site after the demolition of some unused, older buildings."
After persuading GM officials of the feasibility of the plan, the City began an infrastructure improvement process, including updating water and sewer lines, leveling and grading the site, and resurfacing roads adjacent to the new plant. "LGR builds on a history of excellent community-labor-business relationships and sets a new benchmark in collaboration-in which everybody wins," Cowger said.
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