Academic journal article Monthly Labor Review

New United Motors, UAW Settlement

Academic journal article Monthly Labor Review

New United Motors, UAW Settlement

Article excerpt

New United Motors Manufacturing Inc. and the Auto Workers (UAW) extended their peaceful collective bargaining relationship, but the contract settlement was clouded when General Motors Corp. (GM) later announced it would cease producing its Nova cars at the Fremont, CA, plant, which is jointly owned by GM and Toyota Motors Corp. GM Said that the decision was forced by slow sales of the Nova car model. The company indicated it was satisfied with the improvements in product quality and productivity resulting from the joint venture, which utilizes Toyota's personnel and production approaches. GM also indicated that it was planning to begin manufacturing its new Geo Prism model in the plant. Toyota indicated that it would continue manufacturing its own models in the plant.

The new 3 -year contract provides for only one specified wage increase-3 percent-in July 1990, but the 2,200 employees will continue to be the highest paid in the industry, according to the union. After the increase, the nearly 2,000 assemblers will be paid $15.46 an hour, and the 200 skilled trades workers will be paid $18.39, including an 85-cent-an-hour cost-of-living allowance and 88 cents resulting from a change in the lunch period. …

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