GM, workers suffered a major drawback – and Mexico plays a role

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Contract talks aimed at ending a 21-day strike by United Auto Workers against General Motors have taken a turn for the worse and hit a major disadvantage over product commitments for US factories, a union wrote in an email to members, AP reports . The letter from UAW Vice President Terry Dittes casts doubt on whether there will be a quick settlement in the contract battle, which sent 49,000 workers to the fence lines on September 16, destroying GM's factories. Your letter says that the union presented a proposal to the company on Saturday. He said GM responded Sunday morning by returning to an offer that had been rejected and made few changes.

The company's proposal did nothing to address a variety of items, Dittes wrote, and specified job security for its members during the four-year contract. A person briefed on the calls said Sunday that the union expressed concern about GM increasing production in Mexico, where it now builds pickup trucks, small cars and two SUVs. The person, who spoke on condition of anonymity because the talks are private, said both sides are far apart on guarantees about new products in US factories. In a statement, GM said it continues to negotiate in good faith "with very good suggestions that benefit today's employees and build a stronger future for all of us." (Republicans appear to be in a bind for this issue.)