General Motors says its industrial relations with its unionised workforce have improved following a tough period.
Conceding its labour force “had given up a lot,” GM’s apparent return to rude health with a series of sparkling quarterly results and the runaway success of its IPO have also appeared to engender greater harmony on the shop floor.
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“GM has historically had a difficult time with labour,” GM vice president strategic planning Steve Girsky told just-auto at the Detroit show. “What bankruptcy has done is force transparency with constituents.
“The company had to open its books and could not hide – the unions knew there was no monkey business.”
Girsky emphasised union participation as GM continued its recovery and, although he admitted the labour force had “given up a lot,” he nonetheless cautioned against too radical a change.
“You don’t want to turn the business model upside down again,” he said, although noting: “[Dan] Akerson’s view is if we get bonuses, they [unions] should get bonuses.”
Admitting that during GM’s dark days, “I had a great seat at a bad movie,” Girsky insisted the company had emerged from bankruptcy able to make money at a low point in the cycle.
“I know we will make mistakes, but I would rather make some mistakes by going too fast, because I can guarantee you will make more mistakes by going slow,” he said.
GM still earns more money from its truck and SUV businesses – “no question” – but insists it is becoming more competitive in the car segments.
However, as petrol prices climb ever-higher, the need to keenly anticipate such oil spikes means GM has to keep on its toes concerning its portfolio.
“I don’t want to get caught with US$4-US$5 gas and we don’t have a low-end portfolio or if it is weak,” said Girsky. “We have got a lot of young, affluent consumers and they want to get features in a small car, as well as fuel economy.”
