Strike Threatens More Gm Plants

A General Motors source said the two truck plants will run out of parts from Indianapolis late on Thursday night during their second production shifts, joining a plant in Fort Wayne, Ind., that shut down Wednesday night.

The Fort Wayne plant laid off about 2,250 of its 2,600 workers as it halted production of GMs popular full-size Chevrolet and GMC pickup trucks.

The official declined to identify the plants, but said they will be among several still-operating truck facilities that receive hoods, fenders and other large body panels from Indianapolis, including Pontiac and Flint, Mich.; Oshawa, Ontario; Linden, N.J.; Shreveport, La.; Moraine, Ohio; and Silao, Mexico.

 

The strike by 2,750 workers at Indianapolis and a second walkout by 4,800 workers in Janesville, Wisconsin., have formed a two-pronged effort to squeeze GMs highly profitable light truck operations.

Meanwhile, GM and the UAW continued a more than 24-hour bargaining session Thursday in an effort to hammer out a new national labour contract covering 215,000 GM hourly workers.

The marathon session, which started at about 10 a.m. EST, was the longest so far between the union and the worlds largest automaker, said GM spokesman Charles Licari.

He declined to comment on any progress being made.

Typically, negotiators in labour contract talks for Detroits Big Three automakers meet for long periods to work out final details just before reaching a tentative agreement.

But analysts say the dollar cost of lost truck production due to the Indianapolis and Janesville strikes could mount quickly, shutting off GMs biggest source of profits.

The shutdown of the Janesville plant alone could cost GM $50 million a week in pre-tax profits, adding to pressure on GM for national and local contract settlements, said David Healy, an auto analyst with Burnham Securities.

The southern Wisconsin factory is the sole source for GMs popular four-door, full-size Chevrolet Tahoe and Suburban and GMC Yukon sport utility vehicles. Analysts estimate that GM makes an average of $9,000 in variable profits on each of the trucks.

As its truck operations grind toward a halt, the companys US car assembly plants affected by a three-week strike in Canada earlier this month are starting to come back to life.

GM said Thursday that 4,200 idled workers returned to their jobs at car plants in Flint, Mich., and Fairfax, Kansas, cutting the total number of U.S. workers laid off due to the Canadian Auto Workers walkout to 19,958.

The future of 12 domestic parts plants that GM considers uncompetitive has been a major sticking point in the negotiations. GM wants to exclude several of the plants from union demands that it guarantee employment for 95 percent of UAW workers over the next three years.

Ford Motor Co. and Chrysler Corp have already granted such guarantees, but GM, the least efficient of Detroits Big Three automakers, wants changes to the pattern to allow it to cut costs.

GM has already put two of the 12 plants on the sale block a door hinge plant in Flint, Michigun, and an interior trim plant in Livonia, Michigun, that together employ 2,100 workers.

GMs stock was off 50 cents at $52.875 in midday trading on the New York Stock Exchange.