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GM talks show little progress
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July 2, 1998: 6:22 p.m. ET
Automaker, UAW find little common ground as strike grinds on
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NEW YORK (CNNfn) - Talks between General Motors Corp. and the striking United Auto Workers Union remained stuck in neutral Thursday, with UAW officials threatening to expand the strike to the few GM parts plants still operating.
Danny Thetford, president of UAW Local 651, said there was little progress on Thursday and if negotiations don't improve soon, the union will no longer agree to let UAW members work at GM parts plants that supply vital parts to non-GM customers.
"We made the commitment to continue, but it's contingent on some improvement in the talks," he said.
Most of GM's parts and assembly factories have been closed as a result of the strikes at two GM parts plants in Flint, Mich. last month. However, Local 651 and GM have had an agreement they would cooperate to keep parts, such as spark plugs, flowing to other customers. In this case, the parts are bound for retail customers such as Wal-Mart, Kmart and Pep Boys.
"Our fight is with GM, not the non-allied suppliers," he said.
Thetford could not say how many UAW members were involved in the non-GM customer factories but he warned the commitment may be withdrawn if the strike grinds on.
Some 162,000 UAW members have been idled as a result of the strikes.
Talks are scheduled to resume on Friday at 9 a.m.
Talks between GM and the UAW have progressed little since June 5, when about 3,400 United Auto Workers from Local 659 walked off their jobs at a Flint metal-stamping plant in a dispute over work rules and productivity.
Six days later, on June 11, another 5,800 members of Local 651 struck the Delphi East plant across town, a diversified parts facility that makes spark plugs and instrument clusters.
The strikes have forced GM to shut down 26 of its 29 North American assembly. GM has lost approximately $1.2 billion due to the shutdowns.
Ironically, the strike comes as GM is enjoying a sales boom, thanks in part to hefty rebates. The world's largest automaker sold nearly 500,000 cars and trucks last month, the best rate in nine years. Truck sales zoomed 45.6 percent while car sales were up 8.3 percent.
However, GM officials have warned the company's sales figures will suffer in July if the strike continues.
On Wednesday, a top marketing executive at GM said the strikes could leave GM dealer lots practically empty this month, allowing arch-rival Ford Motor Co. to pass GM in the monthly sales race.
Shares of GM (GM) closed Thursday at 68-7/8, up 3/8. 
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