ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, March 12, 1996 TAG: 9603120125
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
DATELINE: DAYTON, OHIO
SOURCE: Associated Press
IF IT GOES ON LONG, every General Motors plant in North America could be idled. So far, 58,000 workers have been affected.
A week-old strike at two General Motors brake factories continued to strangle the world's largest automaker Monday, closing nearly half the company's North American assembly plants and idling thousands of workers.
There were indications that talks with the United Auto Workers had stalled. No progress was reported over the weekend and no new talks were scheduled, GM spokesman Jim Hagedon said. Local 696 President Joe Hasenjager said the strike ``could be a long one.''
David Healy, a financial analyst with New York-based Burnham Securities, said GM could lose $250 million a week if all of its 29 car and truck assembly plants in North America are idled. The automaker earned $6.9 billion in 1995.
``It just gradually cascades up to that point,'' Healy said.
GM spokesman Tom Klipstine in suburban Detroit would not comment on a report in the local newspaper, The Oakland Press, that virtually all of GM's North American assembly plants may have to close by Wednesday if the strike continues.
Investors appeared to shrug off the strike Monday, boosting GM's stock by $1.75 a share to $56.621/2 on the New York Stock Exchange.
When the strike began, GM had an 82-day supply of passenger cars and a 79-day supply of trucks, Klipstine said. The vehicle supply is critical in determining how long it would take for the strike to affect consumers. The industry generally considers a 60-day supply ideal.
Since the 3,000 members of UAW Local 696 walked off the job at Delphi Chassis Systems in Dayton on March 5, GM has been forced to shut down 14 North American assembly plants and six parts plants.
Another 11 of roughly 200 GM parts plants in North America have been affected, with some workers sent home but production continuing. In all, about 58,000 workers have been idled by the strike.
The Delphi Chassis workers struck over safety and job security issues. The plants supply brake systems and parts to nearly all GM assembly plants.
The major issue in the dispute is outsourcing, production of parts by outside plants or companies. The union fears that practice could permanently cut jobs at the Dayton plants.
Hagedon, the spokesman based in Dayton, said GM sometimes must buy less expensive parts from outside sources.
``We don't see how we can sell cars competitively if those cars aren't made with parts that are priced competitively,'' he said.
The union also complained about staffing levels it says has caused overtime and prevented workers from completing safety training. Dayton workers make an average of $69,000 a year in salary and overtime.
Hagedon said overtime is voluntary and worker safety training should be caught up by the end of the year.
IDLED GM PLANTS
Spring Hill, Tenn.: 8,200 workers; produces the Saturn
Pontiac, Mich.: 3,000 workers; produces Chevrolet CK pickup and GMC Sierra
Fort Wayne, Ind.: 1,800 workers; produces Chevrolet CK pickup and GMC Sierra
Ste. Therese, Quebec: 1,500 workers; produces Chevrolet Camaro and Pontiac Firebird
Moraine, Ohio: 4,000 workers; assembles GMC Jimmy trucks, Chevrolet Blazers and Oldsmobile Bravadas
Wentzville, Mo.: 1,500 workers; truck assembly plant producing large vans, Chevrolet Express and GMC Savana
Auburn Hills, Mich.: 225 workers; assembles seats for GM vehicles
Detroit: 3,100 workers; produces Cadillac, Seville, Eldorado and Deville
Lansing, Mich.: 6,000 workers; produces Buick Skylark, Oldsmobile Achieva, Pontiac Grand Am and Chevrolet Cavalier on two assembly lines
Lansing, Mich.: 850 workers; produces engines for car assembly plants in Lordstown, Ohio, and Lansing
Lordstown, Ohio: 4,500 workers; produces Chevrolet Cavalier and Pontiac Sunfire
Orion Township, Mich.: 3,600 workers; produces Oldsmobile Ninety Eight Regency, Eighty Eight Royale, Aurora, Buick Riviera and Pontiac Bonneville
Oshawa, Ontario: 6,500 workers; produces Buick Regal and Chevrolet Lumina and Monte Carlo on two assembly lines
Shreveport, La.: 2,300 workers; produces Chevrolet and GMC S-series pickup trucks
Wilmington, Del.: 2,000 workers; produces Chevrolet Corsica and Beretta
LENGTH: Long : 105 lines ILLUSTRATION: PHOTO: AP. Lattie Slusher (left), president of UAW Local 913 atby CNBGM's Delphi Chassis Systems plant in Sandusky, Ohio, greets Larry
Barton of Local 696 in Dayton. Sandusky workers came to Dayton on
Monday to support the strikers. color. Graphic: The strike's impact
on area companies. color.