UAW Strikes GM Lansing Plant

UAW Strikes GM Lansing Plant
Stoppage May Hurt Hot-Selling Models In Latest Labor Woe

By JOHN D. STOLL
April 18, 2008; Page B4

Union workers at a key General Motors Corp. plant in Michigan walked off the job Thursday, in the latest sign the Big Three auto makers could have trouble reaping the benefits of concessions they won in labor contracts last fall.

About 3,300 workers, represented by the United Auto Workers, went on strike at GM's Lansing-Delta Township plant, where the auto maker has been trying to hammer out an agreement with local union leaders covering an array of issues.

• Labor Dispute: About 3,300 union workers went on strike at a key GM plant in Michigan.
• Broader Issue: Detroit auto makers are trying to squeeze out savings made possible by a contract with the UAW.
• Worker Resistance: Many employees have been reluctant to accept buyouts and early-retirement packages.

While people close to the strike say the UAW is using it to push GM into pressuring one of its suppliers to settle a contentious, two-month contract dispute, the walkout underscores the tension in Detroit as auto makers race to squeeze out savings made possible by the new UAW deal.

The stoppage is the latest bit of rough labor news for GM in particular, which has had to stop or slow production at about 30 plants because of parts shortages stemming from a separate UAW strike against American Axle & Manufacturing Holdings Inc. Unlike that action, which mainly affects the production of slow-selling trucks and SUVs, the Lansing strike affects supplies of the
Buick Enclave and other crossovers that have been hot items for GM during a U.S. sales downturn.

GM, like its competitors, is banking on cooperation with the UAW in order to entice as many workers as possible to take buyouts. The strike against American Axle has hampered GM's ability to present the details of the buyout packages to all 74,000 of its UAW-represented employees in the U.S., spokesman Dan Flores said. Workers at some of the idled plants haven't been able to receive a basic orientation on the packages.

Associated Press
UAW Local 602 members picket during a strike at the General Motors Lansing/Delta Township Plant Thursday in Delta Township, Mich.
President Doug Rademacher of UAW Local 652 in Lansing didn't return phone calls. In a note posted on the local's Web site Thursday, the UAW said: "No, we're not bluffing."
The UAW was set to stage a demonstration in support of American Axle workers Friday, but canceled the rally as the company and union returned to the bargaining table this week.
GM's current struggle parallels the difficulty that Ford Motor Co. and Chrysler LLC experienced earlier this year in their attempts to entice thousands of workers to accept buyouts and early-retirement packages.
The new labor contracts allow the auto makers to offer buyouts and early retirement to older workers and replace them with new hires making $14 an hour -- about $12 an hour less than the wages current workers get. New hires are also given 401(k) retirement accounts instead of more costly life-long pension plans.
Ford had hoped about 8,000 workers would accept the buyout offer it made earlier this year, but was disappointed when it fell at least 3,000 people short of its target, according to a person familiar with the matter. Chrysler was forced to push back the deadline on its buyout program because of poor results.

In an interview Thursday, UAW Local President Chris "Tiny" Sherwood said that more than 200 people, or 10% of the plant's workers, have accepted a buyout package so far at the Lansing plant he represents. That plant, which builds Cadillac CTS luxury cars, is near the Lansing plant that is striking, but Mr. Sherwood's has had a deal in place for a while.

Mr. Sherwood said his local unit hopes to attract about 400 takers for the deal. He is confident that Local 652 will hit its mark by May 22, at which time the offer expires.

In the past, buyout offers by the Big Three lured many takers. In 2006, GM and Ford convinced about 80,000 people to take buyouts.