UAW VP Says A GM Deal is "Within Reach"

Detroit (WWJ) -- As negotiators hold their second post-deadline bargaining session, the union's chief negotiator says it appears the talks are entering their final stage.

In an email to UAW members, Vice President Joe Ashton says they are cloes to the framework for a new contract with GM, and he's optimistic that a settlement is within reach.

Talks resumed at 9 AM Friday, following a 12 hour break.

"GM and the UAW continue to make progress," said a GM statement emailed to AutoBeat Reporter Jeff Gilbert at 9:04 p.m. Thursday. "Talks will resume Friday morning."

Neither side has set a new deadline, after failing to reach the original deadline of 11:59 p.m. Wednesday evening.

"The deadline's a useful thing to focus their attention on the task at hand, but it wasn't a critical milestone that they didn't reach an agreement by then," says Kristin Dziczek, who follows labor issues for the Center of Auto Research.

Dziczek pointed out that, on average, the UAW doesn't settle with the lead company until nearly four days past the deadline. All indications are that General Motors is taking the lead.

In an email to workers, UAW Vice President Joe Ashton said he was "hopeful an agreement can be reached soon."

Things are less hopeful at Chrysler, where a final day dispute between CEO Sergio Marchionne and UAW President Bob King has cooled down the talks.

The union's focus on General Motors left Marchionne waiting for an anticipated meeting with King that didn't happen. The Chrysler CEO had left the Frankfurt Auto Show early and cancelled a meeting with the German chancellor so that he could finalize a deal with King.

Just as the deadline approached, Marchionne fired off an angry letter to King, saying by not meeting the deadline they had failed Chrysler's workers.

"I know we are the smallest of the three automakers here in Detroit, but that does not make us less relevant," said the letter, which was leaked to the news media.

King refused to comment on the letter. But the Detroit News is reporting that the union had been hoping to get a deal with both GM and Chrysler near the deadline, but has now shifted its focus to GM.

But Kristin Dziczek of the Center for Auto Research isn't so sure how close a deal at Chrysler really was.

"To me it was a signal that they weren't really as close as some might have thought, and there were still some tough things to hammer out at Chrysler."

While a GM deal will almost certainly come first -— probably in the next few days, Chrysler will still likely come shortly after. The union wants to get those two automakers out of the way before it starts to finalize a deal at Ford, which is the only automaker where a strike is permitted.

As part of the deal leading to federal aid for GM and Chrysler, the UAW gave up its right to strike this time around. Unresolved issues would instead go to binding arbitration.

But, arbitration carries its own risks.

"It's a very big unknown in this whole scheme of things," says Dziczek. "Most of the people 'I've talked to who are experts in arbitration—it's mostly been done in the public sector—say an arbitration over certain unresolved issues could last a year or longer."

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