GM Prepares to Shut Indianapolis Plant After Workers Reject Concessions
General Motors Co. has started the wind-down of its Indianapolis stamping plant after UAW-represented workers yesterday overwhelmingly rejected a proposed 50 percent pay cut that was sought by a potential new owner of the plant, Automotive News reported.
GM spokeswoman Kim Carpenter said GM has ended its search for a potential buyer.
“We are disappointed that UAW Local 23 was not able to ratify the proposed labor agreement,” Carpenter said in an e-mail.
“As previously announced, we will continue steps to wind down the facility, which will cease production in mid-2011 and close by December 2011.”
Gregory Clark, UAW Local 23 shop chairman, said last week that the cuts were too deep and the plant's 650 workers would take their chances transferring to another GM plant should jobs open. He said about one-third of the hourly work force is eligible to retire.
Clark was critical of the intervention by the UAW International into the issue. In May, the workers overwhelmingly said they did not want to initiate concession talks with the potential new owner, stamper J.D. Norman Industries.
Despite that, the UAW International picked up negotiations and tried to sell the workers on the merits of the new contract. The vote yesterday was 457 no to 96 voting in favor.
The contract proposed to cut production wages from $28 an hour to $14 an hour. A 14-an-hour wage equates to straight-time annual compensation of less than $30,000.
The proposed contract also contained a “buydown” provision that would have paid workers a total of $25,000 over two years to compensate them partially for the wage and benefit cuts.
Clark said the massive plant makes large stampings, such as hoods, doors and fenders, for several GM cars.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →