Preparing For Creative Auto Talks
DETROIT (WWJ) Car companies are taking the long term view heading into this year's auto contract talks.
A person close to the GM-UAW talks said the focus this year will be on "long term competitiveness." They feel the company has started to achieve success, and wants that success to continue.
Negotiators for the major auto companies have declined comments on the talks that begin at Chrysler on Monday, go to GM on Wednesday, and start at Ford on Thursday.
But, those who are close to the situation say they will need flexibility this year to reward workers, without adding unmanageable burdens to the companies' costs.
That will likely mean some sort of variable pay, which rewards workers during good times, but does not hamper the company with higher costs when times are difficult.
UAW President Bob King has shown a willingness to talk about enhanced profit sharing, but says it must include a reward for workers.
The current GM profit sharing system started in 1982, and is based on earnings in North America only. The company appears interested in a simpler system, with more employee involvement.
Another big issue is health care costs. General Motors is paying $665 million a year for employee health care. It would like to reduce that amount. In the 2007 contract talks, the companies were able to create a trust fund to pay for retiree health care.
The union has already said that it's interested in adding jobs. But GM has said that it will only add jobs if there's a market demand. GM is expected to have all workers who are currently on layoff back on the job by the end of this year.
Also at issue, plants in Spring Hill, Tennessee and Janesville, Wisconsin which are idled, because they have no new products, but have not been closed. The UAW would like to see those plants reopened.
General Motors and Chrysler have "no strike" clauses in their contracts, that call for mandatory arbitration if an agreement can't be reached. The company is preparing for arbitration, if it's necessary, but a source close to the talks says they would prefer a negotiated contract.
That same source says GM would like to take the lead in the talks and become what used to be called the "strike target." That would give the company the ability to set the agenda for other automakers. Although observers say there is likely to be less of a pattern in this year's contracts than there have been in previous years.
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