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UAW strikes Johnson Controls plant supplying GM

DETROIT
Wed Jul 16, 2008 4:14pm EDT

DETROIT (Reuters) - The United Auto Workers union has called a strike against a Johnson Controls Inc factory in Columbia, Tennessee, that will supply seats and consoles for the upcoming Chevrolet Traverse crossover vehicle from General Motors Corp.

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UAW Local 1853 President Mike O'Rourke, who also represents workers at GM's Spring Hill, Tennessee, assembly plant, said Johnson Controls' management had refused to recognize the union even though 170 of 172 workers at the plant had signed cards seeking UAW representation.

The strike, which began on Wednesday, has the potential to disrupt production of the Traverse, one of the new vehicles GM is counting on to offset declining sales of its full-size trucks and SUVs.

A strike in April at a GM plant near Lansing, Michigan, shut down production of three other GM crossover vehicles that share a platform with the Traverse for almost a month.

Full production of the 2009 model-year Traverse is set to start in early September, GM spokeswoman Sharon Basil said. The plant is currently building test versions of the Traverse that will not be sold to dealers, she said.

A spokeswoman for Johnson Controls could not be immediately reached for comment.

UAW's O'Rourke said he had told GM managers that while the UAW wanted to see a smooth launch for the Traverse, it also needed to ensure that the workers had union representation.

"We want a flawless launch for this vehicle, but it's going to be with union seats and union consoles," he told Reuters.

O'Rourke said Johnson Controls managers had locked out the workers at the plant on Monday. He said the UAW would continue to picket outside the plant until the dispute was resolved.

Workers at the plant were being paid $10 to $11 per hour, had no job security and received minimal benefits, he said.

"They're charging them $60 a week for insurance. So by the time they pay insurance and drive back and forth to work, they're broke," he said. "That's just wrong."

A crossover is a car-based vehicle that offers the high-seating and utility of an SUV with better fuel economy and handling. The category has held up relatively well even as industry-wide U.S. auto sales have fallen to decade lows.

The Traverse, which can seat up to eight, is the fourth new GM crossover. It shares a platform with the Buick Enclave, Saturn Outlook and GMC Acadia, which are built at GM's Delta Township plant near Lansing.

GM is hoping that the Traverse, which is scheduled to go on sale in early October at a base price just under $29,000, will generate momentum for its mass-market Chevy brand.

GM announced a plan on Tuesday to cut $10 billion in costs through 2009, mostly by cutting salaried workers and truck production capacity, as it moves toward a product lineup that relies more heavily on passenger cars and crossovers.

(Reporting by Kevin Krolicki, editing by Mark Porter and Maureen Bavdek)



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