The United Auto Workers union is said to have put three GM assembly plants and two component plants on five-day strike warning, claiming that negotiations to finalise local operating agreements under the national contract have languished. One plant is scheduled to be idled by GM for a month anyway, but one makes GM's strong-selling mid-size crossover models (CUVs) whose loss would be a blow.

 

Analyst Aaron Bragman of Global Insight wrote in a note distributed yesterday, ¡°The question arises: is the UAW really airing grievances with the threat of a strike, or is it a tactic to draw GM into the stalled six-week-long strike negotiations between the union and American Axle Manufacturing?"

 

He continues, "The news of the possible strike at the five GM facilities came just as GM announced that it had finally reached an agreement with the UAW on the classification of jobs in the new tiered wage system.

 

"GM has thus far successfully stayed out of the battle between the UAW and American Axle, and for good reason. By capitulating to the union's demands to become involved to help settle the strike (likely by opening its wallet to help offset some of the guarantees and demands made by the striking membership), GM would open itself to risk from all of its major suppliers that are union-represented. It has set something of a precedent at Delphi, where it has taken upon itself a significant amount of worker compensation and even rehired some employees into the GM fold; but GM is still heavily invested in Delphi. American Axle has been independent of GM almost entirely for several years, and the automaker is trying to keep it at arm's length.

 

"The heads of American Axle and the UAW were scheduled to meet yesterday (7 April) to discuss the ongoing strike and presumably try and come to some new negotiation, but as the strike creaks along, GM has proven thus far that it can weather the downturn in the market for full-size pick-ups and SUVs just fine, much to the union's consternation."

From: auto industry.uk/news