Friday, 26 Apr 2024

UAW sues GM over decision to end production at U.S. plants

(Reuters) – The United Auto Workers union on Tuesday filed suit against General Motors Co over its decision to end production at three U.S. auto plants, saying it violated a 2015 collective bargaining agreement.

The suit filed in U.S. District Court in Ohio said GM’s decision to end production at three plants in Michigan, Ohio and Maryland announced in November violates its contract. The UAW wants a federal judge to order GM to rescind its decisions to close the plants and award damages to employees for losses resulting from GM’s “breach of contract.”

GM said in a statement that its decisions to halt production “do not violate the provisions of the UAW-GM National Agreement. We continue to work with the UAW on solutions to our business challenges.”

GM said in November it was cutting up to 15,000 jobs and ending production at five plants in North America, including one in Canada.

On Friday, GM said it had extended the production at its Detroit Hamtramck plant until January 2020, after earlier saying it planned to discontinue production in June. The suit does not cover GM’s Detroit Hamtramck plant because it will remain operational beyond the current contract’s September 2019 expiration.

The No.1 U.S. automaker is revamping its operations as it looks to boost profitability after U.S. auto sales declined.

The UAW said GM plans to end production at its Lordstown, Ohio assembly plant on March 8. It will also end production at its White Marsh plant in Maryland on May 3 and at its Warren Transmission on August 1.

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