Lear, facing strike in Missouri, gets letter from GM that prompts UAW to file NLRB complaint
General Motors told Lear Corp. on Tuesday that Lear is in breach of its contract with GM by not supplying the seats needed to keep GM's assembly line going at the Wentzville Assembly plant in Missouri, where GM makes its profitable midsize pickups and cargo vans, according to a person familiar with the situation.
The notification came in the form of a letter after GM was forced to idle the factory on Monday because about 500 workers at the nearby Lear Wentzville facility went on strike at midnight Sunday. That was when their contract expired without a new tentative agreement with the company. The Lear plant supplies the seats for GM's vehicles made at Wentzville Assembly, which remained idled again on Tuesday.
The breach of contract letter has now become a source of bargaining pain for Lear because it prompted the UAW to file an unfair labor practice charge against Lear with the National Labor Relations Board on Tuesday. The person familiar with the letter asked to not be identified due to the sensitivity of ongoing negotiations.
'A scare tactic'
In a notice to UAW Local 282 members obtained by the Detroit Free Press late Tuesday, Ken Barrett, the UAW Local 282's lead bargainer, wrote that the bargaining committee was prepared to negotiate with Lear on Tuesday, but the company had a "different agenda."
"They used their time to reject our membership's demand and to present a letter from General Motors that seats be supplied," Barrett's letter stated. "The letter and the intent of its presentation was designed as a scare tactic to claim that if we didn't accept the terms of the company's proposal, Lear would lose the business."
Barrett said the action was unethical and illegal, so the union filed an unfair labor practice charge with the NLRB.
Asked about the letter, GM spokesman Kevin Kelly emailed the following statement to the Free Press: "We are not going to comment on communications between us and our suppliers. We reiterate that we hope the parties are able to reach an agreement as soon as possible."
Lear said, in a statement, "We continue bargaining in good faith with the UAW in accordance with all of our legal responsibilities. We are working hard to reach a fair and equitable settlement as soon as possible" at the Wentzville plant.
Neither the UAW International nor the NLRB responded to requests for comment.
GM pressure
But UAW Local 282 President Bill Hugeback told the Free Press that GM's impatience will help the union, because each day GM can't build its vehicles costs the automaker money.
“This unit is very strong and they have a good solidarity and they’re going to hold out and get what they deserve. The Lear Corporation has made millions and millions of dollars," Hugeback said. "The longer (the strike) goes, I feel the more pressure GM will put on Lear because they’re losing a lot of money with that plant sitting idle.”
Indeed, Wentzville Assembly is one of GM's key plants and was one of the first plants the UAW struck last fall during its targeted so-called Stand Up strike.
Hugeback said the union has made about 60 proposals to Lear that are unresolved at the moment, with the two biggest issues centering on health and safety and production standards. Those lead to the worst injuries in the plant, he said.
"We have some contractual language that has been presented to the company and we’re waiting for them to respond to the demands that we have," Hugeback said. "We’ve been in negotiations for a month and a half and we’ve had quite a few proposals. The main ones we have not resolved as of yet. We told them we are not going to do an extension."
On Monday, a spokesman for Lear sent the following statement to the Free Press, asking it be attributed to the company:
“We have negotiated in good faith with the UAW for some time to reach a new collective bargaining agreement for our Wentzville, Missouri, seating assembly plant. Despite progress in the negotiations, the union informed us late last night of their decision to strike. Lear Corporation stands firm in supporting our employees and the communities in which we operate. With over 100 years in the automotive industry, we pride ourselves on our successful relationships with our employees and union partners. We remain committed to reaching an agreement that will benefit all parties.”
Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.