Labor talks resume between GM and UAW

Labor talks resume between GM and UAW

	Published : Sun, 16 Sep 2007 18:30 By : Agencies Print this Story

DETROIT (AP) - Contract negotiations resumed Sunday between General Motors Corp. and the United Auto Workers following widespread reports of progress over the weekend but with several tough issues remaining.

Bargainers returned to the table about 11 a.m., GM spokeswoman Katie McBride said.

Local union leaders said the UAW continued to work hour-by-hour under the terms of a national contract that expired at midnight Friday.

Many local union halls across the nation had mobilized for GM's 73,000 U.S. auto workers to go on strike, but those preparations were put on hold as it appeared that progress was being made in Detroit. Local 276 at a GM sport utility vehicle plant in Arlington, Texas, told workers on its Web site to report to work as scheduled.

'The instructions for all employees at the General Motors Assembly Plant in Arlington, Texas, remain the same: You are instructed to report to work at your normal time on Monday,' a notice on the Web site said.

Workers again gathered at the union hall near the Spring Hill, Tenn., assembly plant awaiting word from Detroit. Local 1853 President Mike O'Rourke said he also was told by bargainers in Detroit that progress was being made.

'We are just hanging out,' O'Rourke said Sunday morning.

Only two GM plants in Flint and Lansing were scheduled to operate Sunday, and McBride said to her knowledge the plants were running as scheduled.

Negotiations ended about 9 p.m. Saturday without an agreement after a daylong bargaining session.

Some union subcommittees -- which handle issues such as pensions, benefits and job security -- have wrapped up talks, but negotiators were still dealing with some key issues, according to a person who was briefed on the negotiations.

The person, who spoke on condition of anonymity because the talks are private, said GM Chairman and Chief Executive Rick Wagoner and UAW President Ron Gettelfinger were involved in the discussions.

Several local union officials who have been in touch with bargainers said the main outstanding issue was retiree health care expenses. GM wants the union to take over responsibility for retiree health care costs using a company-funded trust, and the union was asking for job guarantees in exchange for taking on the costs.

The local officials spoke on condition of anonymity because they weren't authorized to speak publicly about the talks.

This year's contract talks are considered crucial to the survival of GM and its U.S.-based counterparts, Ford Motor Co. and Chrysler LLC. Ford and Chrysler were also in talks over the weekend, but they extended their contracts with the UAW indefinitely Thursday after the UAW named GM the lead company in the negotiations. Once the union wraps up talks with GM, it will try to implement similar agreements at Ford and Chrysler.

All three companies want to cut or eliminate what they say is about a $25-per-hour labor cost gap with their Japanese competitors. The gap, the companies say, is one reason why the Detroit Three collectively lost about $15 billion last year, forcing them to restructure by shedding workers and closing factories.

The UAW is also fighting for its survival. The union represented 302,500 active workers during the last contract talks in 2003. This year, that number fell to 180,681.

AP Auto Writer Dee-Ann Durbin contributed to this report.