MAIN INDEX APPENDIX F GENERAL MOTORS CORPORATION September 28, 1999 Mr. Richard Shoemaker Vice President and Director General Motors Department International Union, UAW 8000 East Jefferson Avenue Detroit, Michigan 48214 Dear Mr. Shoemaker: It is the policy of the General Motors Corporation to perform maintenance work with its own employees, provided it has the labor, skills, equipment and facilities to do so and can do the work competitively in quality, cost and performance and within the projected time limits. At times the Corporation does not deem advisable doing the work itself, and it must, as in the past, reserve to itself the right to decide whether it will do any particular work or let the work to outside contractors. This letter is not to be regarded as impairing that right in any way. The Corporation hereby assures the Union that it has no plans to change its policy and that it expects to continue its general operating policy of placing primary reliance on its own skilled trades employees to perform maintenance work to the extent consistent with sound business practice, as in the past. In this regard, we have seen the use of joint Management and Union work schedule and business opportunity teams work very successfully in many of our locations. This approach has not only enhanced job security, but has allowed a better understanding as to the competitive challenges facing the parties. As such, each location is encouraged to establish a skilled trades subcontracting planning team involving both Management and Union representation who will review forecasted work schedules, including projects and jobs which may be subject to subcontracting, in order to develop the most efficient approach to the work to be performed. Plants who have experienced success with this approach have found that meetings scheduled weekly, if necessary, were most beneficial, and therefore such meetings should be scheduled accordingly at all plants. The Corporation is genuinely interested in maintaining maximum employment opportunities for its skilled trades employees consistent with the needs of the Corporation. Therefore, in making these determinations, the Corporation intends always to keep the interests of General Motors personnel in mind. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations [See Par. (42a), (183)(a)-(e)] [See App. F1 - F2] [See Doc. 58, 59] APPENDIX F-1 GENERAL MOTORS CORPORATION September 28, 1999 Mr. Richard Shoemaker Vice President and Director General Motors Department International Union, UAW 8000 East Jefferson Avenue Detroit, Michigan 48214 Dear Mr. Shoemaker: During the 1979 negotiations the Union discussed with the Corporation serious problems affecting the job security of employees resulting from contracting out of work. During the course of negotiations, the Union complained that in certain instances the work force in maintenance and tool and die trades particularly was reduced through attrition and then work was contracted out to the point where there was insufficient manpower available within the plant to perform the work; that in certain instances EIT’s were reduced to production jobs and work in their trades which they historically performed and which they were capable of performing was subsequently contracted out for extended periods without recalling the EIT’s to the skilled trades jobs from which they had been reduced; and that in certain instances skilled trades employees were permanently laid off and new work which they had historically performed was contracted out for extended periods, instead of recalling these employees to their jobs. Similar complaints were made relative to work in the Corporation’s engineering departments. In certain instances, the Union alleged that work historically performed in the Parts Division had been contracted out accounting in part for the reduction in the number of employees in that division. The essential elements in the complaints registered by the Union went to the question of job security. During the 1996 National Negotiations, the parties reviewed the competitive advantage of General Motors talented skilled trades workforce. Discussed were the Union’s concerns for the integrity of the apprenticeable trades, the job security of the skilled trades workforce, the content of skilled trades work assignments, and the status of work functions historically performed by the bargaining unit. At times it is not practicable for the Corporation to do the work itself, and it must, as in the past, reserve the right to decide whether it will do particular maintenance, tool and die and engineering skilled trades work, or contract it out. The Union recognizes that in making such decisions the Corporation must consider among other things, the efficiencies and economies involved, the need for specialized tools and equipment, special skills and the necessity of meeting production schedules, model change and plant rearrangement deadlines. In our discussions we agreed that employees’ jobs should not be eliminated by reason of a practice of contracting out, and we agreed that existing employment opportunities of seniority employees should not be unnecessarily reduced by reason of management contracting out work. The Corporation, moreover, states that it is its policy to fully utilize its seniority employees, under circumstances in which it is reasonable and practicable to do so, in the performance of work which they have historically performed to produce its product and perform its services. While GM intends to provide this opportunity to its skilled trades workforce, the parties agreed that prolonged schedules involving substantial overtime were not in the best interest of employees or the Corporation and, as a result, GM must consider the availability of its skilled workforce when scheduling potential overtime. The parties are expected to work out acceptable means by which Management will have reliable information as to the hours employees will work when planning such work schedules. Accordingly, the Corporation states that it will make a reasonable effort to avoid contracting out work which adversely affects the job security of its employees and that it will utilize various training programs available to it, whenever practicable, to maintain employment opportunities for its employees consistent with the needs of the Corporation. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations [See Par. (42a), (183)(a)-(e)] [See App. F, F2] [See Doc. 58, 59] APPENDIX F-2 GENERAL MOTORS CORPORATION September 28, 1999 International Union, UAW Solidarity House 8000 East Jefferson Avenue Detroit, Michigan 48214 Attention: Mr. Irving Bluestone Vice President and Director General Motors Department Gentlemen: During the current negotiations the parties discussed the special procedure for processing subcontracting grievances as provided by Paragraphs (42a) and (46). The parties agreed that should the Director of the GM Department of the International Union elect to handle such a case pursuant to Paragraph (42a) (2), and refer it back to the Appeal Committee for negotiation pursuant to Paragraph (117), such negotiations shall be limited to the issues defined in the written record of the case. Very truly yours, George B. Morris, Jr. Vice President [See App. F, F1] MAIN INDEX