Wednesday, June 24, 1998

Rift between GM, United Auto Workers keeps growing deeper

By BRIAN S. AKRE / AP Auto Writer

LAS VEGAS (AP) -- The deepening mistrust between the United Auto Workers and General Motors Corp. is clearly evident at the UAW's convention, as the costly strikes that have crippled the world's largest automaker drag on.

Gathered in a city known for selling eternal optimism in the face of unfavorable odds, UAW leaders opened the 32nd constitutional convention on Monday with several pronouncements that further dimmed hopes for a quick settlement.

The union will "last one day longer" than the automaker, President Stephen P. Yokich vowed. "We're going to continue this until we beat it," Yokich shouted to an eruption of applause from the 2,000 convention delegates.

If the strikes at two parts plants in Flint, Mich., are not settled this week, they could last two to three weeks into August, said Richard Shoemaker, the union's chief of GM relations. He told reporters he doubted a deal would be reached before GM's scheduled two-week summer plant shutdown begins next week.

Negotiators resumed talks again today in Flint. Shoemaker said there had been "very little progress on the key issues" despite weeks of negotiations.

Even more worrisome, Shoemaker said that once the ongoing strikes are settled, GM will face two more possible strikes: at a brake plant in Dayton, Ohio, and another stamping plant in Indianapolis.

So far, 122,400 workers have been temporarily laid off at plants across North America that are closed or slowed down because of the lack of parts from the two Flint factories.

The strikes by 9,200 workers began June 5 at the Flint Metal Center stamping plant and June 11 at Delphi Flint East, which makes engine parts and dashboard instruments. GM has closed or partially closed 24 assembly lines and nearly 100 parts plants.

The cost to GM is staggering: about $75 million a day in lost production. If the walkouts last into mid-August, the after-tax penalty on second and third-quarter profits could total more than $2 billion, said analyst David Healy of Burnham Securities Inc.

But both sides seem more entrenched with daily attacks.

"Somebody's going to have to back away from a public position, and I don't know who's going to blink first," Healy said.

GM spokeswoman Mary Irby said the company was "not interested" in responding to the comments union leaders made Monday.

Labor Secretary Alexis Herman spoke to the convention but was careful not to take sides. She said she was confident the collective bargaining process would prevail and that GM employees would return to work soon.

There was little evidence of cooperation at the start of the weeklong convention, where a union member speaking from the floor suggested tearing down a video display featuring GM labor chief Gerald A. Knechtel praising the "cooperative spirit" of GM and the union.

Yokich shrugged off the suggestion. "I think we sent a hell of a lot stronger message when we shut the whole country down," he said. The crowd roared with approval.