posted by GM Fan on Jun 17

The cost of labor may be one of the major factors in the current slump the US auto industry is experiencing. Up to a certain degree, that statement can be true, but without labor there will be no cars. General Motors is looking that the possibilities with the UAW to cut the gap of labor costs versus the non-labor auto producers.

The move is supported by as much as 74% of the union locals and is set to help make the American brands more competitive with the foreign brands of vehicles rolling into the US shores.

The deal with the UAW focuses on the essential elements like decreasing the production cost per unit and explore possibilities on retirement plans. These points will help GM handle its large population of retired workforce and its current wages and benefits for the employees. At present, the changes will affect about 54,000 employees across 46 plants and offices in the United States.

The element often overlooked on a competitive gap analysis is the long history of the company in terms of employment. Foreign car makers like Nissan, Honda, and Toyota may be building thousands of cars in the US on a yearly basis but does not have the big overhead of retired employees to manage like that of Chrysler, Ford, or GM.

The efforts of the negotiating panels from both the UAW and GM will give way to the closing in of the competitive gap and help the auto industry. Everything is also made possible with the cooperation of the employees and retirees of GM.

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