ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, March 23, 1996 TAG: 9603260011
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
DATELINE: DAYTON, OHIO
SOURCE: Associated Press
Striking autoworkers overwhelmingly approved a new contract and went back to their jobs at two General Motors Corp. brake factories Friday, ending the industry's biggest shutdown in a generation.
The 18-day strike was by just 2,700 employees. But the action brought GM's North American assembly plants to a near standstill and idled more than 177,000 workers.
The settlement lets GM continue ``outsourcing,'' or buying parts from outside suppliers - the heart of the dispute. But the United Auto Workers said GM also agreed to create hundreds of new jobs at the Dayton plants.
``We feel that it's a good agreement and a good future,'' said UAW Local 696 President Joe Hasenjager.
Ninety-nine percent of the 1,739 workers who cast ballots voted in favor of the agreement.
Production resumed immediately at the brake factories. GM officials said most of the assembly plants that receive parts from Dayton could be back in operation within about a week.
It is the longest strike against the world's No. 1 automaker since 1970, when a national walkout lasted 68 days.
``I think it's a compromise to a certain extent,'' said worker Lowell Padgett, 64. ``I think the union won, and I think the company won, too.''
The strike, which began March 5, halted production at 26 of GM's 29 assembly plants in the United States, Canada and Mexico because the automaker receives parts on a ``just-in-time'' basis. When vital parts such as brakes are unavailable, assembly lines quickly run out and have to close down.
The walkout also stopped work at many independent suppliers of auto parts.
Car buyers were largely unaffected, however, because GM had an 82-day supply.
Frank Cassell, professor emeritus of labor at Northwestern University, said GM accomplished little by not settling quickly.
``I figure they lost about $800 million in a dispute that they could have settled right away under much the same terms,'' he said. ``It sounds to me like that was a pretty expensive settlement, but of course we're not hearing the company's side.''
The dispute centered on GM's practice of buying parts from outside manufacturers to reduce costs. The union says outsourcing eliminates jobs; the automaker says the practice is necessary to stay competitive.
GM spokesman Jim Hagedon said that under the settlement, the company retains the right to outsource and the brake plants still must compete for work.
The UAW said the agreement will add at least 392 jobs to the two brake plants, guarantee the continuation of 122 anti-lock brake systems jobs until 2004, and establish a committee to pursue 269 new positions.
``Some of the outsourcing has been stopped. We're never going to completely eliminate it,'' said worker Gary Stockslager, 49. ``But we got quite a few new jobs coming into the plant.''
Hagedon said, however, that the new jobs had been agreed to previously, based on new business coming in.
Under the settlement, GM also agreed to pay $5.6 million to the workers as compensation for previous subcontracting and other grievances.
GM also will take care of more than 600 safety complaints and spend $6.5 million to correct health and safety violations, union officials said. Hagedon said GM is working on safety issues, but he could not confirm the $6.5 million figure.
As workers returned to their jobs, Trish Baker was all smiles. ``It's because I get a check next week,'' she said. ``Everybody's happy at this point.''
LENGTH: Medium: 75 lines ILLUSTRATION: PHOTO: AP. Members of United Auto Workers celebrated Fridayby CNBafter they voted to accept a deal with General Motors and end the
strike.