GM CEO Dan Akerson and UAW President Bob King shake hands at the opening of contract talks.
General Motors and the United Auto Workers Union opened contract negotiations with a determined show of unity emphasizing what they had in common rather than their divisions.
The ceremonial handshaking at GM came two days after the UAW opened the latest round of contract talks at Chrysler – with union and management negotiators significantly showing up wearing the same maroon pullovers.
“We want the new GM to succeed and when it does, everyone will benefit,” said Chairman and CEO Dan Akerson. “We are playing to win, and we’re counting on our work force — hourly and salaried — to take on the challenges together and forge new partnerships as a competitive advantage, ”
Like union leader Bob King, Akerson attended the opening ceremony in a casual polo shirt. The event itself was held in the center of GM’s Detroit-Hamtramck assembly plant rather than in a corporate conference room.
Akerson deliberately minimized potentially divisive issues such as health care, saying he didn’t expect it to be a major issue or any kind of a stumbling complex. He instead praised GM employees, noting their level of dedication and commitment goes beyond anything he’s experienced during his long experience in business, or in the military. Akerson was an officer in the U.S. Navy before moving to the private sector.
However, he said the company’s next labor contract must leave GM competitive with rival automakers.
For his part, UAW President Bob King stressed the company and the union have common goals. “We’re extremely committed to getting the best contract for our members but also (for) the long-term success of the company,” King said.
(GM’s Akerson says Opel is not for sale. Click Here for more.)
Referring to the factory where the opening ceremony was held, King said, “This plant is very, very important. It’s symbolic of the new relationship between the UAW and General Motors.”
The union leader insisted he was optimistic about the prospects for the talks, telling reporters, “I’m upbeat because of the relationship between the leadership at the top of the UAW and GM.
“Our members are invested in the success of General Motors,” said King, who minimized the past conflicts between the company and union, which have reached epic proportions at times.
A classic union firebrand in his early years, King has taken a decidedly different tone since assuming the reins at the UAW last year. He has emphasized “creative problem solving,” and underscored his belief that only by helping make the domestic auto industry viable can union members gain jobs. That position reflects the wholesale decline in automotive employment in recent years. The UAW itself has seen its membership plunge from a 1979 peak of 1.53 million to barely 330,000 at the end of 2010.
“Our members bring a lot to any organization – a commitment to quality and producing the best product for the best price,” King said. “Our talks will center on the needs of our members and the need to continue
to build great products.”
As part of the opening ceremony, the company and the union made a joint donation of $25,000 to the Wounded Warrior Project, which helps veteran injured in Iraq and Afghanistan recover from their injuries.
UAW Vice President Joe Ashton, who directs the union’s GM Department, and Cathy Clegg, GM vice president of Labor Relations, announced the contribution and recognized other charitable partnerships the UAW-GM team has with non-profit organizations across the country. Akerson, a graduate of the U.S. Naval Academy at Annapolis, promised to match the $25,000 donation from his own personal funds.
GM also announced a commitment to increase the number of veterans in the work force as the company prepares for hiring new employees. Military service will be among factors considered in the screening process. On May 10, GM announced a $2 billion investment at 17 plants in eight states, creating or retaining about 4,000 jobs over the next 18 months.
“GM’s positive momentum has been outstanding,” the UAW’s Ashton said.
“I was there when GM started trading again on the New York Stock Exchange and I have participated in many U.S. manufacturing announcements. Our membership plays a critical role in the success of this company and I’m proud to represent this work force,” Ashton said, adding that, “The turnaround of GM is a positive story. Two years ago people were writing GM off.”
Cathy Clegg was my plant manager for a couple of years before my retirement, and I found her to be an honest, honorable (and smart) person whose office door was open to hourly and management alike. Just from my UAW standpoint, she should facilitate a smooth negotiation, and I have every reason, unlike others who have posted on other sites, to believe that Bob King will do the same. I’ll be happy, as a retiree, to continue the present direction of my retirement, and hopefully GM and the UAW will be able to work a formula for opening another plant or two, increase employment and find a way to give active employees an equitable share of the profits, while still growing GMs business. I also found the news that the automakers as a whole have compromised with the Obama administration over gas mileage rules to be quite exciting, and certainly a break from the petulance over CAFE from the past 30 or so years. Not to be too optimistic, but the industry does seem to be on a more positive turn, and all parties involved maybe have seen the bottom of the pit and decided that there are other ways to run the automotive business.