Automotive News reported today the UAW and GM are approaching an agreement on a local contract for both the Lordstown and Fairfax plants. GM has been pleased enough with the progress to restart work on the Epsilon II and Delta II platforms which will carry the next generation of GM’s small and midsized front wheel drive cars.
Work on the two new platforms came to halt as GM retaliated to a UAW move to involve the national office in the UAW Local’s negotiations. Tensions between the UAW and the automakers have been increasing as contract negotiations are expected to begin this summer for the new collective bargaining agreement between Detroit and UAW. Also adding to the tension, is the standoff between Delphi and the UAW over management demands for another round of union concessions while management was given substantial bonuses for company performance.
In the past two years the UAW has agreed to health-care concessions for both Ford and GM plant employees to help reduce ballooning costs at the ailing auto giants.
