UAW betrays GM confidence

Was it malice or mistake?

Firstly, there was the two-day strike by the UAW (Union of Auto Workers) last week -- to 'help' General Motors see a contrary point of view.

At the time, the UAW and GM were locked in negotiations for a new agreement to replace the four-year contract that expired September 14.

Now, the UAW has provided a detailed listing of products built -- or more importantly, to be built -- in the US for the next five years.

The 'leaked' listing has been reported extensively in US trade journals and on enthusiasts' websites.

Of particular interest to Australians, the Zeta platform which underpins the Commodore and the upcoming Chev Camaro will go into production at GM's Lansing, Michigan plant from 2011.

Also of interest to our readers, production of the Alpha small RWD platform will commence at the Lordstown, Ohio plant the same year.

The Zeta platform at Lansing is not the Camaro or the 2009 Chev Impala, both of which are to be built at the Canadian plant at Oshawa. According to the UAW information, Zeta will be built at Lansing in "two styles". That most likely means two distinctly different cars, since Americans are moving away from altogether badge-engineered cars.

The Alpha platform is believed to be a car that would compete head to head with BMW's 3 Series model range and has been suggested as a basis for the Torana TT36 concept car (more here), unveiled prior to the release of the VE Commodore.

In respect of the agreement forged between GM and the UAW, General Motors will relinquish the punishing health benefits that have been a significant contributor to the company's financial losses.

According to the Wall Street Journal, GM will slide out from under the health benefits costs by paying the UAW US$29 billion now, $5.4 billion to cover worker's health benefits for 2008/2009 and a further $1.6 billion for the fund over the next twenty years.

The payments will be credited to the UAW's Voluntary Employees Beneficiary Association (VEBA). UAW workers are offered bonuses in lieu of pay rises over the next three years and workers agreeing to the reforms will receive a $3000 bonus to sign the contract.

In addition, GM will bring out-sourced production in-house, adding 3000 full-time staff to the roster and changing the status of 3000 part-time employees to full-time.

The UAW will assume responsibility for the workers' health care and this will be funded from GM's payments and investment returns.

With GM out of the way, the UAW now moves on to negotiations with Ford and Chrysler.

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