UAW, Big Three Discuss Longer Contracts

08/29/96

Reuters has reported more details about discussions to lengthen the term of the UAW's three year contract with Detroit's Big Three carmakers. Union and company officials have both acknowledged discussions concerning extending the contract to five- or six-years.

The union said they were open to the idea of a longer contract, provided it offers significant guarantees of job security. Carl Dowell, president of UAW Local 862 in Louisville, KY, said, "it has surfaced in the subcommittees. There was no problem with a longer-term agreement if it's fruitful for our people. Job security is the key."

Ford spokesman Jon Harmon said the automaker suggested that both sides examine the possibility of negotiating a longer-term contract about three weeks ago. Ford says it likes the idea because a longer agreement would stabilize Ford's future costs, and allow it to evaluate future product and investment decisions more accurately. "It gives you more of a known quantity," he said.

UAW President Stephen Yokich has said he would be open to a longer contract if the automakers "want to buy it." Some UAW officials, however, remain sceptical about the idea, noting that removing the threat of a strike every three years could invite abuse from the automakers.

Ed McNulty, president of UAW Local 14 at GM's Toledo, Ohio, truck transmission plant, said, "The question is how can GM live up to a five-year agreement when they can't live up to a three-year agreement?"

McNulty explained that a longer contract would have to provide a mechanism for its own enforcement and revision. That way, local issues that are sure to arise during its term, like sourcing and staffing levels, could be resolved.

Sourcing and job disputes have caused UAW strikes against individual GM plants several times over the current three-year contract. "You're going to have to have some good job security and outsourcing provisions for the membership to go for it," said McNulty

Paul Dever -- The Auto Channel