UAW ends strike at auto supplier Nexteer's U.S. operations (updated)

Nexteer Automotive

09/12/2015 01:54

(Adds details on tentative agreement, end of strike) 
    By Joseph White 
    DETROIT, Dec 8 (Reuters) - Union workers at Nexteer 
Automotive Group Ltd's  1316.HK  plant in Saginaw, Michigan, 
reached a tentative agreement on a new contract late on Tuesday 
and will return to work after a nearly day-long strike, 
officials from the United Auto Workers said. 
    About 3,200 UAW-represented Nexteer employees at the 
company's main North American factory walked off the job early 
on  Tuesday after rejecting an earlier contract proposal. The 
walkout halted production of steering systems and other 
components essential to vehicle production by General Motors Co 
 GM.N  and other automakers. 
    Later in the day, leaders of United Auto Workers' union 
Local 699 announced on their Facebook page that a new tentative 
agreement had been reached, and instructed members to report for 
work starting with the third shift on Tuesday night. The UAW did 
not disclose details of the new agreement, which is subject to 
ratification by members of Local 699 and could be rejected. 
    The strike at Nexteer came after UAW-represented workers at 
the Saginaw factory on Sunday voted down a previously proposed 
contract by a wide margin. Local 699 leaders posted a tally 
sheet of the vote on Facebook showing 3,103 "No" votes to only 
80 "Yes" votes. 
    Nexteer, controlled by a unit of Aviation Industry Corp of 
China  SASADY.UL , was formerly part of GM and remains a major 
supplier of steering systems and related hardware to the 
automaker. Nexteer supplies steering systems for GM's profitable 
Chevrolet Silverado and GMC Sierra pickup trucks. 
    GM and Fiat Chrysler Automobiles NV  FCHA.MI   FCAU.N  said 
in statements earlier on Tuesday that they were monitoring the 
situation at Nexteer. GM also said its production had not been 
disrupted.  
    FCA said Nexteer supplies parts to several of its North 
American factories. 
    Ford Motor Co  F.N  said in a statement that Nexteer's 
Saginaw facility "does not directly support any Ford operations 
in North America." 
 
 (Editing by Diane Craft, Frances Kerry and G Crosse) 
 ((Joe.White@thomsonreuters.com)) 
 
Keywords: AUTOS UAW/NEXTEER