UAW continues talks as contract deadline nears

The union, which has said little about the progress of the talks, appeared to be negotiating hardest with DaimlerChrysler AG. Officials met at the German-American automaker's U.S. offices in Auburn Hills late into Monday night and resumed talks early yesterday.

''The negotiations are proceeding very, very well ... but it isn't over 'til it's over and we'll all just have to wait and see,'' DaimlerChrysler co-chair Robert Eaton told the cable financial network CNBC in an interview yesterday morning from Frankfurt, Germany, where he was attending an industry trade show.

Negotiations were also under way with General Motors Corp. and Ford Motor Co. UAW negotiators met at GM during the weekend, but did not meet at Ford.

In the past, the union has extended contracts past the deadline. Ford spokesperson Ed Miller said the UAW had indefinitely extended Ford's contract until midnight last night.

An extension had yet to be arranged for DaimlerChrysler or GM, but experts said a strike that would threaten a boom year for the auto industry seems unlikely. The UAW has not called a national strike during contract negotiations since 1976.

The UAW usually chooses one automaker to make a deal with first, then uses that deal as a template for other contracts. This year, union President Stephen Yokich has kept talks going with both GM and DaimlerChrysler, and refused to publicly name a target.

Both sides have released little information about the talks. Wages, job security, health-care costs, overtime demands and the assignment of work to outside suppliers were expected to be among the top issues in this year's talks, as they were during the last round in 1996.

Union leaders have said that workers were entitled to a share of record automaker profits; the three companies combined earned more than $5.5 billion in the second quarter of 1999.

There are few indications of what proposals the UAW and DaimlerChrysler might be negotiating. The union has discussed efforts to organize DaimlerChrysler's nonunion plants in the United States: a Mercedes-Benz sport utility factory in Alabama with 1,600 workers and at Freightliner commercial truck plants in the Carolinas.

UAW leaders have complained about company moves against organizers. DaimlerChrysler has vowed to remain neutral in the UAW's efforts.

It is against federal labor rules for the issue to be part of the UAW's contract. But problems in the organizing campaign will affect DaimlerChrysler's relationship with its largest U.S. union.

Wages are an issue at GM, which has sought to mend fences with the UAW after last summer's 54-day strike at two Flint, Mich., parts factories that virtually shut down the automaker's North American production.

According to union newsletters, the UAW has asked GM for higher wages, and sought better overtime compensation with more money and extra time off. In recent years, automakers have held down employment by increasing overtime; the average GM hourly worker adds about 9 hours of overtime a week.

GM has offered to guarantee lifetime employment for workers with at least 10 years of experience; DaimlerChrysler reportedly has offered a similar proposal. In return, the companies would likely seek more flexibility in hiring or job rules.

The thorniest issue appears to be at Ford, which would like to spin off its Visteon parts unit that employs 23,500 UAW workers. The UAW is opposed to the move, fearing job cuts and lower wages at a separate company.

09-15-99