GM reaches tentative deal to end Fairfax plant strike

It looks like GM is starting to turn the corner with its labor issues. Recently the automaker reached an agreement with workers at its Delta Township plant that builds the Buick Enclave, GMC Acadia, and Saturn Outlook crossovers, and it just came to terms with the Canadian Auto Workers union. The American Axle strike that crippled truck and SUV production is also finally coming to a close, and now reports indicate that the General has reached a tentative agreement with striking workers at its Fairfax plant in Kansas City, too.

GM's Fairfax plant is responsible for building the Saturn Aura and popular new Chevy Malibu, and since its workers went on strike May 5th, the automaker has lost production of approximately 4600 vehicles per week. Last year GM reached a landmark agreement with the UAW to help the company cut costs, which included the addition of new, lower salaries and moved worker healthcare responsibilities to a union-affiliated trust fund. Some individual manufacturing plants balked at the agreement's details, and workers at Fairfax went on strike over treatment of seniority rights, as well as local work rules.

The well-regarded Malibu has been a bright spot in an otherwise dismal year for GM, with sales up 18 percent over the same period in 2007. In comparison the automaker's overall sales are down 12 percent overall for the year. Now that production of the popular sedan is no longer threatened, hopefully the General can get back to work on its financial turnaround and focus on some of the exciting new products it has in the pipeline.

Source: Automotive News (Subscription required)