Auto talks reach pivotal point as chance for strike looms

DETROIT -- Contract negotiations between General Motors Corp. and the United Auto Workers reached a critical point Sunday as local union officials hoped for an agreement but prepared once again for a possible strike today.

Leaders at factories across the country received conflicting reports out of Detroit on Sunday afternoon. Several reported progress and optimism but said that if no agreement was reached Sunday night, the union would walk out this morning. A local in Arlington, Texas, however, told its members to report as scheduled today.

At a union meeting Sunday afternoon, UAW Local 735, president Chuck Rogers told members from a GM transmission complex near Ypsilanti that he was told by one of the negotiators that if no agreement was reached Sunday, they will go on strike.

Two other local leaders also said they were told to expect a strike if no agreement was reached Sunday. They asked not to be identified because the talks are private.

Negotiations were continuing at 7 p.m. Sunday, said GM spokeswoman Katie McBride.

Rogers told union members that the union came within minutes of striking Friday night when president Ron Gettelfinger walked out of a bargaining room after getting into a dispute with GM negotiators. But GM chief financial officer Fritz Henderson intervened and brought Gettelfinger back to the bargaining table, and progress has been made since then, Rogers said.

GM's contract with the UAW was to expire at midnight Friday, but the union extended it on an hour-by-hour basis. The strike threat loomed until early Saturday, when negotiators told local leaders to stand down.

Strike talk often is heard when negotiations get close to or pass the contract expiration deadline.

"I heard things are moving kind of in the right direction," said Dave Green, president of one of two locals at the Lordstown, Ohio, plant that makes small cars for Chevrolet and Pontiac. "We let our folks know a strike is not out of the question," he said, adding that he hoped for a resolution.

Bargainers worked all day Saturday, taking a rest break at 9 p.m. and resuming negotiations at 11 a.m. Sunday, said GM spokeswoman Katie McBride. She reported progress but said several tough issues remained, declining comment on specifics.

A message was left for UAW spokesman Roger Kerson.

Local 276 at a GM sport utility vehicle plant in suburban Dallas told workers on its Web site Sunday to report to work as scheduled.

"The instructions for all employees at the General Motors Assembly Plant in Arlington, Texas, remain the same: You are instructed to report to work at your normal time on Monday," a notice on the Web site said.

Only two GM assembly plants -- in Flint and Lansing -- were scheduled to operate Sunday, and McBride said those plants were running as scheduled. GM has about 73,000 UAW-represented hourly workers at its U.S. factories.

One of the local union officials who asked not to be identified said the main outstanding issues were retiree health care expenses and promises from the company that it will build new vehicles at UAW-represented factories. GM wants the union to take over responsibility for retiree health care costs using a company-funded trust. The UAW was asking for job guarantees in exchange for taking on the costs.

GM, Ford Motor Co. and Chrysler LLC have a combined unfunded retiree health care obligation of more than $90 billion.

The local official said he was told Sunday that both sides had moved closer on funding the health care trust, but they were still apart on job security guarantees for factories.

On Thursday, the union named GM as the lead company and potential strike target, extending contracts with Ford and Chrysler that can be ended by either party with three days' notice. Once the union reaches an agreement with GM, it will try to implement similar deals at Ford and Chrysler.