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Second GM strike looms
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June 10, 1998: 5:53 p.m. ET
Flint, Mich., walkout affects 18,000 as another strike deadline approaches
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NEW YORK (CNNfn) - More than 18,000 United Auto Workers members across 10 General Motors Corp. plants have been furloughed as negotiators from both sides returned to the bargaining table Wednesday.
About 2,300 workers at GM's Linden, N.J., plant were the latest casualties of the strike that began Friday at a key stamping plant in Flint, Mich.
Meanwhile, officials of the nation's largest automaker (GM) and UAW Local 659 continued to negotiate Wednesday, with little progress reported.
But union officials said they are more optimistic that the talks can yield a resolution soon in the face of an upcoming deadline for a second strike against the automaker.
UAW Local 651 will have authorization to strike a nearby plant operated by GM's Delphi unit by Thursday evening. Compared with the Flint stamping facility, Delphi plants supply more components and are believed to have a wider ranging effect on GM's production.
The Delphi facility in Flint produces both engine components such as spark plugs and air filters, as well as electronics such as cruise control systems. In addition to GM, the plant also supplies parts to original equipment manufacturers.
"They are optimistic that the closer it gets to 651's strike deadline, the more willing the company will be to sit down and talk with 659," said Rita Jackson, recording secretary at Local 659.
It was a strike at two Delphi plants based in Ohio that nearly halted all of GM's North American production in 1996, costing the automaker about $900 million.
Delphi and Local 651 officials have agreed not to discuss the issues of the negotiations.
At issue at the Flint stamping plant is concern over accelerated workloads, increased local investments, and health and safety problems.
Wall Street analysts estimate the Flint Metal Center walkout will cost GM $68 million a day, or about 10 cents a share, in lost profits, and may, over time, threaten 55 percent of GM's North American production.
GM officials have declined to speculate on the strike's impact.
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