Local labor talks expected to start at Lordstown plant

The new buyout program is to be explained March 24.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

LORDSTOWN — Talks on a new local labor contract at the Lordstown car assembly plant are expected to resume soon.

Leaders of United Auto Workers Local 1112 informed members in a flier this week that they are going to be setting up times for negotiations.

The talks are crucial to the future of the plant, which produces the Chevrolet Cobalt and Pontiac G5. General Motors has told the UAW that it intends to bring a new model to the plant in 2009 and another in 2010. No official announcement is expected, however, until a labor contract is worked out.

Local contracts cover plant-specific issues such as seniority, overtime and job classifications.

Talks have been on hold since a brief national strike against GM last September. Talks were not restarted because the UAW officials in Detroit wanted to be sure all locals understood the new national contract.

Local 1112 leaders said those meetings have been completed.

The new national contract creates a two-tier wage system, with workers in jobs not on the assembly line being paid about half of the traditional plant wage. The flier said that the UAW has decided to allow workers to choose jobs based on seniority.

The union officials also said that GM officials intend to explain a new buyout and retirement incentive program the week of March 24.

GM is trying to save money by enticing higher workers to leave the company or retire. New workers who are hired to replace them would be paid less if they are working in nonassembly-line jobs, such as material handling, dressing engines or preparing tires and wheels. New workers also would have less generous benefits than current workers.

GM is offering workers with at least 30 years of service $45,000 to retire. Those with less service have other options, which range up to a $140,000 payment to leave the company without pension and health care benefits.

Local 1112 at the assembly plant represents about 2,400 hourly workers.

Local 1714 at the adjacent fabricating plant, which also must negotiate a local labor contract, represents about 1,000 hourly workers. No announcements have been made on the start of those talks.

shilling@vindy.com