Nexteer workers are on strike after two contract offers have been deemed unsuitable. GM's truck plant in Flint could be idled soon if a deal doesn't get done.

With one of General Motors most valuable assembly plants threatened with shutdown, the United Auto Workers and Nexteer Automotive of Saginaw, Michigan, scrambled to find a solution to a day-old strike that could wreak havoc with pre-Christmas production schedules not only at GM, but also at other automakers as well.

The strike began early Dec. 8, and the UAW said late that day they had worked out a new tentative agreement with Nexteer’s management that would be presented to members of UAW Local 699 quickly.

Members of UAW Local 699 had overwhelmingly rejected one contract offer during a Dec. 6. ratification vote. UAW’s leadership rejected the second contract offer presented by Nexteer because it did not go far enough in meeting the objections of Nexteer’s workers. 

The union then set a midnight strike deadline, which brought to a halt all production at Nexteer’s sprawling production site just outside of Saginaw. The plant had once been part of General Motors Corp. and then Delphi Automotive before being sold to Chinese investors in 2010.

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The dispute centers pay and health benefits, according to union representatives. As at FCA in September, workers complained about the inadequate pay increases and changes that would have left them paying more out of pocket for health care.

“We are currently working with the UAW to resolve the issue in a timely manner. Our 1,800-plus salaried workforce at the Saginaw facility remains focused on continuing to service our customers,” Nexteer said in a statement as the discussion continued, which added the company was trying to protect both its competitive position and employees.

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The GM assembly plant most threatened immediately by the walkout is the GM Truck Assembly plant just down I-75 from Saginaw. Since Flint Truck, which builds some of GM’s most expensive trucks, is the closest to the Nexteer plant, it has the smallest inventory of unused components in transit as in-bound freight. In addition, it appears some trucks bound for Flint assembly had been caught behind UAW picket lines.

Nexteer Automotive is a multi-billion dollar company that builds electric and hydraulic steering systems, steering columns and driveline products for manufacturers in North and South America as well as Europe and China.

The company has 20 manufacturing plants, six engineering centers and 14 customer service centers strategically located in North and South America, Europe and Asia. Nexteer serves more than 60 customers worldwide, including GM, Fiat Chrysler Automobiles, Ford Motor Co., Toyota and PSA Peugeot Citroen, as well as automakers in India, China and South America.

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The complex in Saginaw is the center of its manufacturing operations as well as its chief engineering center. A strike could force automakers such as GM and FCA, which are dependent on Nexteer’s plant in Saginaw to curtail production.