General Motors and workers at its assembly plant in suburban Moraine have reached a tentative contract agreement that would put the facility in position to build a new generation of sport utility vehicles, a GM official told Reuters.
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GM reportedly declined to comment on details of the contract and the relevant union branch didn’t return a call but its website confirmed an agreement had been reached, again with no details.
Reuters noted that the plant’s future was called into question in February when GM said the workers would have to become more competitive in producing vehicles – none were slated to be produced there after 2008.
If workers approve the agreement and GM’s board of directors approves a proposal to produce a new generation of mid-sized SUVs, those vehicles would be built at the Moraine plant, GM spokesman Dan Flores told the news agency, adding that the board is expected to make a decision by the end of the year.
About 4,150 workers are employed at the plant, which currently makes the Buick Rainier, GMC Envoy, Chevrolet Trailblazer, Saab 9-7X and Isuzu Ascender.
But GM still plans to eliminate the third production shift in mid-July because of slumping market demand, a move that will cut 1,150 jobs, Reuters noted.
