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UAW Opposes GM Restructuring Plan

United Auto Workers union said Tuesday it objects to a General Motors restructuring plan, saying it will only allow the automaker to shift its production to outside the U.S.

NEW YORK (Kyodo) -- The United Auto Workers union said Tuesday it objects to a General Motors Corp. restructuring plan, saying it will only allow the automaker to shift its production to outside the United States.

GM and the UAW are expected to resume negotiations later this week but they are likely to face difficulties before striking any agreement on viable restructuring measures for GM. The company needs to craft such measures by the government-imposed June 1 deadline or otherwise faces bankruptcy.

"The UAW strongly objects to GM's restructuring plan because it essentially means that GM will be shifting more of its manufacturing footprint from the U.S. to Mexico, Korea, Japan and China, and importing more of the vehicles it sells in the U.S. market from these countries," the UAW said in an open letter to U.S. lawmakers posted on its website.

"If GM is going to receive government assistance...we believe it should have an obligation to build in this country the vehicles it will be selling in the U.S. market," it said, calling on lawmakers to share its view.

GM seeks to close more than 10 plants and eliminate more than 20,000 jobs under its latest restructuring plan proposed in late April.

As for Chrysler LLC, which filed for bankruptcy protection last Thursday, the union expressed its support for the federal government policy to continue to provide aid. The U.S. government has decided to give Chrysler up to $3.34 billion as an operating capital.

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