UAW Seeks GM Board Seat, Sees Successful Talks as Bargaining Chip at Transplants

HAMTRAMCK, MI – United Auto Workers union chief Bob King says a seat for labor on the board of directors at General Motors will be a key proposal during labor talks with the auto maker, and he expects a winning contract will influence his push to organize the U.S. facilities of overseas manufacturers.

“That is definitely one of our proposals – we think corporate governance is important,” King tells journalists after the two organizations kick off contract talks with their traditional handshake here.

GM CEO Dan Akerson (left) shakes hand of UAW President Bob King.

“Nobody has a stronger long-term interest in the success of a company than the hourly workforce, and really the salary workforce, in the plant,” King says.

The UAW already has a link to the GM board through Vice Chairman Steve Girskey, who also serves as a director of the UAW retiree health care trust.

But a direct seat would give the UAW a voice on everyday operations at GM, including the future product allocations so important to its membership.

“(The UAW) should have a seat on the board, because they have this long-term interest, because they want to see the company succeed, because of the sacrifices they’ve made, because they play such a big role,” King adds. “They add value.”

GM Chairman and CEO Dan Akerson declines comment on the issue, but says, “I understand what Bob said. I understand the issue.”

King also says he believes a winning contract with GM would strengthen the union’s renewed push to organize the U.S. facilities of overseas-based auto makers, including Toyota, Honda, Hyundai and Volkswagen.

“It helps in organizing the transplants,” he says. “Workers see that UAW members, because they are part of a union, have a larger voice” on key issues such as improving quality, raising productivity and reducing waste.

“It will help the brand image of General Motors, it will help the brand image of the UAW, and that will be a very positive factor in organizing.”

Organizing traditionally non-union facilities seemingly would benefit GM, by raising labor costs.

Akerson calls GM’s current cost structure “reasonably competitive,” and says “these negotiations are about GM and the UAW. I’m concerned about GM, to keep us competitive.”

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