UAW sues GM over use of temporary workers at Indiana plant

Image
Reuters DETROIT
Last Updated : Jan 03 2019 | 11:15 PM IST

By Ben Klayman

DETROIT (Reuters) - The United Auto Workers union sued General Motors Co in federal court on Thursday, claiming the automaker's use of temporary workers at a plant in Indiana violates its labor deal and escalating a fight over GM's plans to possibly close U.S. factories.

The lawsuit, filed in U.S. District Court in Ohio, was the union's first counter-move to GM's decision in late November to put five North American factories on notice for closure. The decision, which affects four U.S. plants including one in Warren, Ohio, drew the condemnation of U.S. President Donald Trump and members of Congress.

The UAW, which will negotiate a new national labor deal with GM this year, had vowed at the time that it would fight the cuts.

The union said there are about 1,000 laid-off hourly employees that have the right to transfer to plants with openings, including almost 700 at the Lordstown plant in Ohio. GM is employing temporary workers at its Fort Wayne Assembly plant rather than transferring workers, the UAW said.

"UAW members negotiated a binding agreement and we expect General Motors to follow the contract they agreed to and GM members ratified," UAW Vice President Terry Dittes said in a statement.

In December, the UAW sent a letter to GM formally objecting to the decision to end production in 2019 at four U.S. plants, saying it violates commitments made during contract talks in 2015. "We will use all of our resources to enforce our agreements," the union said in the letter.

GM did not immediately comment on the suit, but has said the fate of the plants that have no future product allocated for them to build will be decided in talks with the UAW.

GM is cutting up to 14,700 jobs at the five North American plants and plans to dismiss thousands of white-collar workers later this month after it failed to get enough volunteers to take buyouts. The No. 1 U.S. automaker said in November it would shrink its 54,000-member salaried workforce by 15 percent and its executive ranks by 25 percent.

Trump previously criticized GM's strategy and has called on the Detroit automaker to find a new vehicle for the Lordstown plant. He also threatened to kill a $7,500 federal tax credit program for electric vehicles that is beneficial to GM.

For Trump, the stakes are clear. Ohio is a battleground state the president won in 2016 and needs to win again to be re-elected in 2020.

(Reporting by Ben Klayman and David Shepardson; Editing by Tom Brown)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jan 03 2019 | 11:05 PM IST

Next Story