GM sued by UAW for their decision to end production at U.S. plants

United Automobile Workers (UAW)

The United Auto Workers union on Tuesday submitted suit against General Motors concerning its decision to end production at three U.S. auto plants, saying it breached a 2015 collective bargaining agreement.

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

GM stated that its decisions to stop production do not breach “the provisions of the UAW-GM National Agreement. We continue to work with the UAW on solutions to our business challenges.”

GM stated in November it was slashing about 15,000 jobs and ending production at five plants located in North America, including one in Canada.

On Friday, GM stated it had broadened the production at its Detroit Hamtramck plant until January 2020, following earlier statement that it planned to stop production in June. The suit does not concern GM’s Detroit Hamtramck plant because it will remain operational beyond the present contract’s September 2019 expiration.

The No.1 U.S. automaker is renovating its operations as it seeks to increase profitability after U.S. auto sales reduced.

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

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