A top General Motors labor executive told Automotive News that the company will not create new models just to settle on a new contract with the UAW.
Cathy Clegg, GM's vice president of labor relations, says that GM will only create a new model to meet market demand.
Contract talks with the union are scheduled to begin on July 27, and the UAW has said that creating new union jobs is its top priority.
The union would like GM to increase production at its plants, and there are three that have excess capacity at the moment--one in Spring Hill, Tennessee; another at Shreveport, Louisiana; and one in Janesville, Wisconsin.
It's understandable that the union would want to create more jobs, and it's just as understandable that GM wouldn't want to gamble on the cost of a new model just to satisfy the union. More likely, well, it will take an uptick in the market for GM to fill the excess capacity at those plants with more units of current models.
Comments