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Strike Hits GM Plant That Makes a Big Seller
By Nick Bunkley
The New York Times
Tuesday 06 May 2008
Detroit - General Motors workers who build the Chevrolet Malibu, one of G.M.'s
most popular and important new vehicles, went on strike Monday at a plant in
Kansas after they were unable to reach an agreement with the company on local
work rules.
It is the second strike by a United Automobile Workers local against G.M. this
spring after a decade without any single-plant work stoppages. Workers at a
plant that builds crossover vehicles, which are big sellers for G.M., near Lansing,
Mich., have been on strike for nearly three weeks. Together, the plants employ
about 4,500 people.
The two walkouts are in addition to a long strike at one of G.M.'s parts
suppliers, American Axle and Manufacturing, which forced G.M. to close many
of its truck and sport utility vehicle factories in March and April.
Though U.A.W. officials deny it, some labor experts say that the union is singling
out critical G.M. plants for strikes in hopes that G.M. will prod American Axle
to reach a deal with its workers.
Gary N. Chaison, a professor of industrial relations at Clark University in
Worcester, Mass., noted that several other G.M. plants that were less important
to the automaker's turnaround efforts threatened to strike weeks ago but
continued negotiations without picketing.
"It's very rare that you get strikes on issues like this,"
Professor Chaison said. "They're trying all ways possible to put
pressure on American Axle, having found themselves at a disadvantageous position
in that strike. They're still showing that they're a party that
must be reckoned with, that they still have some influence and leverage in negotiations."
A message posted on the Web site of U.A.W. Local 31 in Kansas City, Kan., said
workers at the G.M. plant in nearby Fairfax walked out because of at least nine
unresolved issues, including concerns about management at the plant, job security
and seniority rights. Wages and benefits are set by the national agreement that
the U.A.W. signed with G.M. last fall.
"General Motors left us with NO alternative after ALL weekend meetings
and NO progress to speak of - the choices were none," the Web site
said. "This local union has worked very hard in the last 20 years negotiating
these important issues and can NOT step backwards by giving into these management
concerns."
Fairfax is one of two plants where G.M. builds the Malibu, which was overhauled
for the 2008 model year. G.M. will be able to continue making the sedan in Orion
Township, Mich., but even with both plants running it was having trouble keeping
up with demand.
Sales of the Malibu were up 43 percent in April, even though G.M.'s overall
daily selling rate was down 23 percent. On average, G.M. says buyers are paying
about $4,000 more for the new version of the Malibu than the old one, which
was sold in large numbers to rental car companies and other fleet operators.
Reviews of the car have been overwhelmingly positive, and G.M. hopes it will
finally challenge Honda and Toyota at the top of the intensely competitive midsize
car segment.
G.M. has only about one month's supply of the Malibu in inventory, compared
with two to three months for most other cars and four or five months for many
slow-selling trucks. So a decline in production caused by the strike could quickly
result in dealers' not being able to find a car with the options that
a customer wants.
"G.M. is disappointed that U.A.W. Local 31 took strike action at Fairfax
Assembly," said a G.M. spokesman, Dan Flores. "We remain focused
on reaching an agreement as soon as possible."
About 3,650 workers at American Axle factories in Michigan and New York went
on strike Feb. 26, saying the company's demands that wages be cut nearly
in half were too harsh. The company says it cannot afford to continue paying
its workers about $28 an hour while rivals like the Dana Corporation, which
also has a U.A.W.-represented work force, pay about $14 for similar work.
Progress has been reported in the negotiations recently, but the sides remain
in a tense standoff. American Axle recently warned the striking workers that
if the union did not agree to reduce wages and benefits, the company would be
"forced to plan for the potential closure of some, or all, of these uncompetitive
facilities."
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