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Tentative deal reached to settle GM-Kansas City strike
   posted 9:04 pm Tue May 20, 2008 - DETROIT
General Motors Corp.'s string of labor problems could soon be coming to an end with a tentative agreement reached Tuesday at a key assembly plant in Kansas City, Kan.GM reached the deal on a local contract with United Auto Workers Local 31 at the plant Tuesday evening, company spokesman Dan Flores said.
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About 2,500 workers have been on strike at the factory, which makes the hot-selling Chevrolet Malibu as well as the Saturn Aura, since May 5. Although the UAW settled its national contract with GM last fall, local contracts that govern work rules, overtime and other items are negotiated at each location.

Flores said he did not know when the local's members will vote on the deal or when production would resume.

ABC 33/40 News myTAKE - What's Your Opinion?The Associated Press left messages Tuesday evening seeking comment from UAW spokesman Roger Kerson and Local 31 President Jeff Manning.



"We're certainly pleased that we have a tentative agreement," Flores said. "Obviously, Malibu and Aura are very important products for us."

Industry analysts have said the strike in Kansas City and one at a key crossover vehicle plant in Delta Township, Mich., were designed to draw GM into a long, bitter strike by the UAW against parts maker American Axle and Manufacturing Holdings Inc. Union officials, including UAW President Ron Gettelfinger, denied any connection and said the strikes were over local contract disputes.

The UAW and American Axle reached a tentative agreement Friday, and several locals voted Monday to approve the pact. A large local in Detroit votes Thursday.

Production resumed Monday at the Delta Township plant after workers ratified a tentative agreement reached May 15.

American Axle makes axles, drive shafts and stabilizer bars for GM's large sport utility vehicles and pickup trucks. The 12-week strike at five American Axle facilities crippled GM's production and caused thousands of layoffs at GM and other parts suppliers.

GM said it lost $800 million in the first quarter and produced 230,000 fewer vehicles due to the strike.

The automaker kicked in about $218 million to help settle the American Axle strike.



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