Sky Pontiac Solstice

Sky Pontiac Solstice

New Deal Can Close Two Gm Plants

In a detailed copy of the new agreement between General Motors and United Auto Workers, the automaker committed plans for its 16 U.S. assembly plants. However, the new deal also posed potential shutting down of plants in Michigan and Indiana and other facilities. The new vehicle production in the 16 plants was GM’s response to the UAW’s demands for job security. On October 10, the 74,000 GM hourly employees will complete the ratification of the new deal.

The details of the deal were posted in the internet by Gregg Shotwell, a GM worker and a UAW critic. According to Shotwell, he got the copy of the agreement from a UAW official who attended the contract briefing held in the UAW’s headquarters in Detroit. He did not give the identity of the official as the person requested for anonymity since the deal was not yet been voted upon.

The new contract calls for selling or closing of a plant in Indianapolis and closing an engine plant in Livonia, Detroit. The “white book”, a detailed document revealing that the Indianapolis stamping operation will still continue or for potential relocation to another GM plant “until such time as the plant can be sold to an outside buyer”.

The document also said that GM is considering to keep the plant, however if the plant is not sold or kept, it will be shut down “no sooner than December 2011”. The plant is providing 850 jobs according to a GM web site.

The Livonia plant in Detroit employing 300 workers will continue its operations until its present vehicle production ends in 2010.

“The national parties will jointly explore opportunities for current Livonia seniority employees,” the document said.

The “white book” document also disclosed that the operations of plants in Flint and Parma, Ohio near Cleveland are also in danger. Under the heading “Product Opportunities”, GM and UAW will look for opportunities for the employees in the Flint plant.

For the Parma plant, the document said that there is no future powertrain products that will be allocated. The plant has stamping operations which will continue to generate new products.

Other GM facilities declared as idle will also be closed, according to the document.

Under the new agreement, the Flint North engine plant will add a new facility. GM will be building three “lean, agile, flex engine modules” in a new site close to the plant. The new plant is expected to manufacture a huge number of engines as many as 1,200 four and six-cylinder engines per day.

GM has no plans for the Orion Township plant assembly plant that presently produces the Pontiac G6 under the new agreement, giving edge to the fierce competitors of the G6 like BMW and Volvo and its Volvo parts. The document also said that both UAW and GM are exploring opportunities for future products. GM is also planning to transfer Saturn Sky and Pontiac Solstice production from the Wilmington plant in Delaware to the plant in Bowling Green Ky, after the production cycle ends in 2011.

“No future product allocation has been identified beyond the life of the current agreement,” the document says of Wilmington.

“This isn’t a very genuine job security agreement,” Shotwell said.

“The UAW didn’t win anything. The plants that are allowed to stay operating were already allowed to stay open.” he added.

Shotwell’s assessment did not convince union officials from factories that will receive new products provided by the new deal.

About the Author

Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. she is a native of the motor city and grew up around cars hence her expertise in the automotive field.

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