Saturday, April 22, 2006
The plant's future was put into question in February.
DAYTON (AP) -- Workers at General Motors Corp.'s assembly plant in suburban Moraine have voted to ratify a new contract that could help the plant secure production of a new generation of sport utility vehicle, a GM spokesman said Saturday.
The contract ratification is a significant step toward getting Moraine a new SUV, Dan Flores said.
"Right now, we're studying a business plan for a potential next-generation, small-size SUV product, to see if it's viable," he said. "A ratified local labor contract is a big part of the business plan."
GM is expected to decide whether to produce a new SUV later this year, Flores said.
The plant's future was put into question in February when GM said the workers would have to become more competitive in producing vehicles or compete with other GM plants for new vehicles after 2008.
Voting on the contract proposal began Thursday night and ended Friday. It updates a contract set to expire Oct. 15, 2007.
Details
According to the agreement, workers will not get a planned September wage increase averaging 38 cents per hour, retirees will begin contributing to the cost of their health insurance and GM will be allowed to change work rules, said Henry Reichard, chairman of the International Union of Electronic Workers-Communications Workers of America Automotive Conference Board.
A message seeking comment was left for the IUE-CWA Local 798, which represents about 3,800 hourly workers at the plant, which employs some 4,150 overall. The plant makes the Buick Rainier, GMC Envoy, Chevrolet Trailblazer, Saab 9-7X and Isuzu Ascender.
GM still plans to cut 1,150 jobs by eliminating the third shift at Moraine in mid-July because of slumping demand.
GM lost $10.6 billion in 2005, mostly because of increased competition and rising costs in North America. The automaker in November said it wants to cut 30,000 U.S. hourly workers and close 12 facilities by 2008. The Moraine plant is not on that list.