GM, union clash as bankruptcy looms

• Source: The Global Times
• [09:51 May 11 2009]
• Comments

General Motors' plan to close US-based plants and outsource production has triggered outcry from the United Auto Works (UAW) union as bankruptcy looms for the troubled auto maker.

Negotiations have been complicated by a long-standing feud between GM and the union as both sides hurry to fashion a new labor agreement ahead of the June 1 deadline imposed by President Barack Obama's automotive task force.

Neither the UAW nor GM voiced comments on the negotiations starting last week, although senior union officials went public with criticism.

“The UAW strongly objects to GM's restructuring plan because it essentially means that GM will be shifting more of its manufacturing footprint from the US to Mexico, Korea, Japan and China,” UAW legislative director Alan Reuther wrote in a letter to the US Congress.

The latest plan put forward by GM calls for the closing of 16 US manufacturing facilities in the United States, including four assembly plants. “This will result in the direct loss of 21,000 jobs,” Reuther's letter said.

GM, already trimming its salaried workforce by 14 percent, is planning a new set of cuts this month that may be similar in severity in some units.

President Obama outlined new aid to the jobless Friday that allows unemployed workers to get more education and training, and the government would help pay for that training.

In another development, Canada has warned the Canadian Auto Workers (CAW) that General Motors will likely liquidate its operations in the country if the union fails to make contract concessions, the head of the CAW said Thursday.

Agencies