ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, November 7, 1996 TAG: 9611070039
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
DATELINE: CHICAGO
SOURCE: Associated Press
THE AUTO WORKERS' UNION will have more say than expected in decisions to contract out production work, according to a new pact set for ratification.
The United Auto Workers negotiated a significantly larger role in General Motors' decisions to make or contract out for parts under their new three-year contract.
UAW leaders from the 123 GM locals heard union President Stephen Yokich and his bargaining team explain the tentative contract at a closed-door meeting Wednesday. It was expected to be endorsed by the UAW-GM leadership council before going before GM workers for ratification next week.
It appears the GM contract largely follows the pattern set by the recent pacts at Ford Motor Co. and Chrysler Corp., but deviates in several key areas.
A summary of the agreement reached Saturday indicates the UAW gained a major role in so-called ``outsourcing'' decisions than it negotiated with either Ford or Chrysler.
That is significant because GM makes far more of its parts than its Big Three competitors. To become more competitive, it has been preparing to sell or close underperforming plants operated by its huge Delphi Automotive Systems parts subsidiary.
The UAW says GM also guaranteed to maintain at least 95 percent of its UAW-covered jobs. Ford and Chrysler have similar language in the contracts they negotiated in September.
The contract requires the company to provide the union with extensive information on its proposals to sell parts businesses or buy parts from outside suppliers. The goal is to give the union local a chance to make a proposal to perform the work competitively. If the best proposal comes from an outside supplier, the union local will be given at least a month to meet the terms of that proposal.
Like the Ford and Chrysler contracts, the GM pact provides a $2,000 bonus in the first year, followed by 3 percent wage increases in the second and third years. The typical GM worker will gain nearly $14,000 over the life of the contract.
Reaction to the deal among local leaders was largely positive. Steve Featherston, president of Local 1999 in Oklahoma City, said he was pleased the wage provisions, the lifting of a cap on outside earnings for retirees, and improvements in outsourcing issues. ``Anything we can do to keep jobs, we need to keep doing it,'' Featherston said.
LENGTH: Medium: 53 linesby CNB