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August 25, 2019
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UAW head to GM: we invested in you, now invest in us

UAW head to GM: we invested in you, now invest in us

DETROIT (Reuters) – The UAW and General Motors Co (GM.N) on Tuesday formally kicked off contract talks, with the union’s president calling on the automaker to keep open plants it has slated for closure and to invest in its workforce after the union helped it through a government-led bankruptcy a decade ago.

FILE PHOTO: United Auto Workers (UAW) union President Gary Jones addresses UAW delegates at the ‘Special Convention on Collective Bargaining’ in Detroit, Michigan, U.S. March 13, 2019. REUTERS/Rebecca Cook/File Photo

“We invested in you, now it’s your turn to invest in us,” United Auto Workers’ President Gary Jones said at a joint event with GM executives in downtown Detroit.

This year’s talks on a new four-year contract between the union and the Detroit automakers are expected to be contentious, as U.S. auto sales are slowing after a long boom.

Rising healthcare costs, job security and the use of temporary workers are also expected to be major sticking points.

GM in particular has been a target of union ire since announcing the closure of five North American plants late last year.

That move drew widespread condemnation, including from Republican U.S. President Donald Trump. Criticism has persisted despite GM’s stated efforts to seek jobs at other plants for all displaced workers.

Workers from GM’s Lordstown, Ohio, plant, wearing red shirts emblazoned with “Invest in Lordstown,” greeted UAW officials with applause as they arrived at the event on Tuesday.

GM is in talks to sell the Lordstown plant to electric vehicle startup Workhorse Group Inc (WKHS.O) and an affiliated, newly formed entity.

Workers in Lordstown built the Chevrolet Cruze, a sedan, sales of which had plummeted in the last few years as Americans abandoned passenger cars in favor of larger, more comfortable pickup trucks and SUVs.

GM Chief Executive Mary Barra said in remarks before a formal handshake with Jones that the pace of change in the auto industry has intensified as automakers invest heavily in the race to develop electric vehicles and self-driving cars.

“We are not here just to survive … we are here to win,” Barra said. Winning “represents growth and that means jobs,” she added.

The UAW and Ford Motor Co (F.N) officially launched negotiations on Monday, where Jones had struck a similarly adversarial tone, vowing that workers should share in automakers’ profits and to prevent their jobs being outsourced to Mexico or China.

The union and Fiat Chrysler Automobiles NV (FCHA.MI) will formally launch talks later on Tuesday.

Reporting By Nick Carey; editing by Jonathan Oatis


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