With General Motors’ deadline for restructuring now just days away, talks between the Detroit automaker and the United Auto Workers union are starting to ramp up. Both sides will meet in Washington later this week.
GM and the UAW are currently holding talks involving a wide-range of topics, but the latest will focus on keeping jobs in the United States. “The UAW is actively involved in these complex negotiations, which involve the Obama auto task force, GM management, bondholders and secured lenders, dealers, parts suppliers and other stakeholders,” the UAW sais in an e-mail obtained by Automotive News. “These negotiations will have a major impact on wages, benefits and jobs for active and retired UAW members.”
A recent document revealed GM is playing to import China-made vehicle by 2011, with more than 50,000 vehicles set to come from China each year by 2014. Although that figure would represent less than 2 percent of GM’s total U.S. sales, it could be the beginning of a slippery slope for the UAW. In addition to importing China-made cars into the U.S., GM also plans to sell more Mexico and South Korea-made vehicles here in the coming years.
It remains to be seen how the balance will pan out, but the Obama administration will likely side with the UAW to keep jobs in the U.S. while GM will lobby for more foreign-made products to keep production costs down.
