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GM talks inch forward
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July 9, 1998: 6:56 a.m. ET
GM, union officials indicate progress, though key issues remain unresolved
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NEW YORK (CNNfn) - Negotiators from General Motors Corp. and the United Auto Workers union expressed optimism about the latest round of talks to end the strikes afflicting the auto maker, though the most divisive issues still need to be resolved.
UAW Vice President Richard Shoemaker and GM Vice President Gerald Knechtel met face-to-face Wednesday and were scheduled to meet again Thursday. Talks were also scheduled to resume at the two strike-idled parts plants in Flint, Mich.
Though both sides have indicated some progress has been made, they have also been quick to point out that many key issues remain unresolved.
The planned closing of two former GM factories has slowed settlement talks, officials told reporters.
The union has expressed concern about further plant sales by GM's parts-making unit, Delphi Automotive Systems. Closing the two plants, which GM sold in 1996, would idle 1,200 UAW members.
Factory sales are part of GM's effort to prepare the Delphi unit for an initial public offering as early as next year, according to the reports.
Nonetheless, word that progress had been reached in the talks sent GM (GM) up 3-3/8 to close at 73-3/16 in Wednesday trading.
About 3,400 workers represented by UAW Local 659 walked off their jobs June 5 at GM's metal-stamping plant in Flint in a dispute over work rules and productivity. They were joined six days later by 5,800 peers from UAW Local 651 at the nearby Delphi East diversified parts plant.
Union workers at the metal-stamping facility, the Flint Metal Center, accuse GM of reneging on pledges to invest $300 million in plant upgrades and of attempting to slash jobs or move them out of the country.
Industry analysts have speculated a deal could be announced before the end of the week, when GM normally would be coming off a two-week model-changeover shutdown. 
-- from staff and wire reports
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