Preserving jobs, pay raises on table as US auto talks open

[Omaha Steve]

Source: AP

By TOM KRISHER

LORDSTOWN, Ohio (AP) — The day before hundreds of United Auto Workers delegates gathered to set strategy for contract talks with the Detroit Three, General Motors sent them a not-so-subtle message.

GM announced a $350 million investment in a Mexican factory to build the Chevrolet Cruze compact car, currently built for all of North America at a sprawling plant in Lordstown, Ohio, east of Cleveland.

At Lordstown and 11 other GM assembly plants scattered across the U.S., some workers feared their jobs could be moving south. Others sensed pre-contract posturing. "If they moved a lot of stuff to Mexico, it would ruin the partnership with the union," said Nick Waun, a worker at an SUV plant outside Lansing, Michigan.

Posturing or not, the talks, which open this month, are expected to be the toughest in recent memory. For the first time in more than a decade, the companies are healthy and making billions in profits. The union says it sacrificed in previous contracts and workers now deserve pay raises. GM and Ford contend that labor costs are already higher than at Honda or Toyota, putting them at a disadvantage.

FULL story at link.



In this Monday, June 22, 2015 photo, United Auto Workers assemblyman Bill Duke tightens lug nuts on a Buick Verano at General Motors' Orion Assembly plant in Orion Township, Mich. Preserving jobs, pay raises, cost cuts are all on the table as Detroit automakers open talks with UAW beginning July 13, 2015. (AP Photo/Carlos Osorio)

Read more: http://bigstory.ap.org/article/569f9590d0424c8e90a98d38b9c3e200/preserving-jobs-pay-raises-table-us-auto-talks-open

[Psephos]

1. "the companies are healthy and making billions in profits"

Yet for some odd reason, after more than five years, GM stock is underwater from its IPO price, and Fiat is trying to dump Chrysler.