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MAIN INDEX Doc. No. 131 SUPPLIER CORPORATE CITIZENSHIP 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: Subject: Supplier Corporate Citizenship During these negotiations, the UAW stated its interest in having the Corporation continue to recognize the importance of using suppliers which are good corporate citizens and which can be relied upon for quality products and reliable delivery. The UAW further pointed out that the Corporation’s selection of and relationship with suppliers have a significant bearing on its relationship with the Union. In this regard, the Union stressed repeatedly the importance of the Corporation’s use of high quality, reliable suppliers which maintain good, fair and equitable relations with their employees. General Motors fully understands the Union’s concerns in these matters, because quality products, uninterrupted delivery and good corporate citizenship -- by the Corporation and its suppliers -- contribute significantly to the Corporation’s success in the marketplace, and all of these factors have a direct bearing on the job and income security of UAW members. General Motors agrees that its relationship with the Union is of paramount importance to the Corporation’s long-term success. The Corporation has told its suppliers and the business community in the past of the positive aspects of its relationship with the UAW and will continue to do so in the future. General Motors, therefore, has no interest in embarking on a purchasing strategy that would detract from that relationship. Correspondingly, the Union has, from time to time, expressed to the Corporation its concern about certain aspects of the Corporation’s relationship with particular suppliers in the area of quality, continuity of supply, and overall performance as a supplier including the maintenance of good relations by the supplier with its employees. The Union recognizes that the Corporation has expressed its views and made suggestions to its suppliers as a result of the Union’s concerns, all within the bounds of applicable legal principles. The parties recognize that instances in which these matters arise are inherently dependent upon the particular facts that are present in each situation and plan to continue to deal with these matters on a case-by-case basis as they have in the past, and in compliance with applicable laws. In particular, the Corporation will continue to urge its suppliers to treat their employees in a good, fair and equitable manner to provide them wages and benefits competitive within their industry, to provide a safe workplace and to avoid conduct which violates national or state labor and employment laws. In addition, the Corporation will, in a manner which is in compliance with applicable laws, notify suppliers of the importance the Corporation places on harmonious relationships between suppliers, their employees and any union that may represent them. In addition, the Corporation will send each of its current suppliers a letter, in the form attached hereto (the “Letter”), within 60 Days after the effective date of the National Agreement. The Corporation will ensure that the Letter is also provided to each new supplier within 14 days of reaching agreement regarding a new contract to supply parts, services or other items to the Corporation. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations SUPPLIER CORPORATE CITIZENSHIP Form of Letter to be Sent to Suppliers This letter will set forth the views of General Motors Corporation with respect to unionization of employees of its suppliers. This letter is not meant to suggest or imply that General Motors Corporation will not do business with a supplier unless the supplier’s employees are represented by a union. General Motors Corporation does not in any sense reject collective bargaining for employees of our suppliers. We do not discourage employees of our suppliers from forming or joining unions to bargain collectively with their employer. General Motors Corporation does not require, or encourage, our suppliers to resist organizing efforts by their employees. General Motors Corporation has a positive and constructive relationship with the UAW as well as the other labor organizations that represent our employees. In our experience, it has also been very helpful to deal with efforts by our employees to form or join unions in a constructive and positive manner. General Motors Corporation will certainly not take retaliatory action, such as canceling or refusing to renew contracts with suppliers based on a decision of that supplier’s employees to join a labor union. It may be appropriated for you to share this letter in its entirety with your employees so that they are accurately informed of General Motors Corporation’s position on this matter. Thank you for your consideration cc: Director - UAW General Motors Department Doc. No. 132 TRANSITION CENTERS 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 current negotiations, the parties discussed the need for joint programs to be made available to employees who are in transition centers as a result of a plant closing or a reduction in the workforce where recall or future GM placement is unlikely. Specifically, the discussions included programs as follows: Basic Skill Enhancement, College/Vocational Skill Enhancement, Financial Planning, Pre/Post-Retirement, Employability Skills and Layoff Services. It was agreed that where a transition center(s) is jointly established, the Local Joint Activities Committee with the assistance of the UAW-GM Center for Human Resources will develop a plan for the implementation of joint programs. When developing the plan, the UAW-GM Center for Human Resources will seek input from the respective Group/Division Labor Relations Director and UAW-GM Department Servicing Representative. Thereafter, a transition team will be formed to implement the plan. Upon approval of the plan, the transition team will organize and administer the joint programs through the Transition Center. The transition team will be trained by the UAW-GM Center for Human Resources and/or its designated representatives. Costs for these programs will be provided through government funding, if available, and/or Joint Funds, where appropriate. The need for these joint programs at transition centers will be reviewed by the UAW-GM Center for Human Resources on an on-going basis. Very truly yours, Gary Cowger Group Vice President - Labor Relations Doc. No. 133 UAW-GM COLLECTIVE BARGAINING AGREEMENT TRAINING PROGRAM GENERAL MOTORS CORPORATION September 28, 1999 Mr. Richard Shoemaker Vice President and Director GM Department International Union, UAW 8000 East Jefferson Avenue Detroit, Michigan 48202 Dear Mr. Shoemaker: Subject: UAW-GM Collective Bargaining Agreement Training Program During these negotiations, the parties discussed training of representatives responsible for administration of the Collective Bargaining Agreement (Agreement) and related understandings. Both parties recognize the benefits that can be achieved when Corporation and Union representatives are knowledgeable concerning agreements which affect their roles and responsibilities. Following ratification of this Agreement, the UAW-GM Center for Human Resources will coordinate, with the Corporation’s Labor Relations Staff and appropriate representatives of the UAW GM Department, the development of a training program which will address the Agreement and related understandings. A training session will be piloted as soon as practical following program development. Candidates for participation in the training could include Plant/Division/Operations managers and supervisors whose responsibilities include Agreement administration, elected and appointed Union representatives, and Human Resources personnel. Participants in the training program will be designated by the Corporation’s Industrial Relations Staff and the UAW GM Department. Funding for this training program, including development costs, travel, lodging and wages of participants, shall come from the existing Joint Training funds. The Grievance Procedure has no application to, or jurisdiction over, any matter relating to this training program. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations Doc. No. 134 WORKING ON A HOLIDAY/VACATION ENTITLEMENT CONVERSION OPTION 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: Subject: Working on a Holiday/Vacation Entitlement Conversion Option During the negotiations, the parties agreed that employees who work on a designated holiday, and are otherwise eligible for holiday pay, may request that eight (8) hours be credited to their Vacation Entitlement Allowance, in lieu of receiving holiday pay. Eligible employees who work on any designated Christmas Period Holiday, may request that eight (8) hours for each day worked be credited to their Vacation Entitlement Allowance, in lieu of receiving holiday pay. Additional time off resulting from the Christmas Holiday Period may be utilized, per local plant practice, at any time during the following year prior to the next Christmas Holiday Period. To provide sufficient time for administration, the employees must submit their request in writing no later than the Friday of the week in which the holiday occurs. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations Doc. No. 135 PLANT SENIORITY / VACATION ENTITLEMENT ELIGIBILITY 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 current negotiations, the parties discussed the situation that may occur when an employee, for reasons of discharge or contractual release, does not have plant seniority at the end of the vacation entitlement eligibility year. In some circumstances: An employee may maintain GM seniority at another location within the Corporation or, A discharged employee’s seniority and/or vacation entitlement may be impacted by the se3ttlement of an associated grievance. The parties agreed that if an employee maintains seniority at any GM location, or if their seniority and/or lost wages are reinstated by a grievance settlement, the employee will be eligible for all vacation entitlement earned during the affected period. Plant Management will notify the NAO Compensation Activity of any relevant situations. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations Doc. No. 136 INDEPENDENCE WEEK SHUTDOWN LAYOFF 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 current negotiations, the parties discussed situations in which employees are laid off prior to the Independence Week Shutdown period and thereby, become ineligible for the four (4) days of the Independence Week Shutdown pay. As a result of these discussions, the Corporation agreed that seniority employees who work in the fourth work week prior to the Independence Week Shutdown period, and who are laid off either temporarily or permanently during that week, or during the first, second, or third work week prior to the Independence Week Shutdown period, shall e considered as meeting the requirements of Par. 202d(2) of the National Agreement. Therefore, these employees will, if otherwise eligible, receive the four (4) days of Independence Week Shutdown pay. This letter does not change or modify the Holiday Pay provisions of the National Agreement. Any wages or benefits received from any other source during the Independence Week Shutdown period, including Unemployment Compensation or other state or federal payments related to unemployment, will create a GM overpayment and shall be recovered by the Corporation from subsequent wages or benefits owed the employee. Recovery of an overpayment resulting from the payment of Unemployment Compensation or the receipt of a waiting week credit will be effected in a manner consistent with Par. 213a. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations Doc. No. 137 INDIVIDUAL WORK SCHEDULES INDEPENDENCE WEEK / VACATION SHUTDOWN 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 current negotiations, the parties discussed situations where employees were not advised of their individual work schedules for the Independence Week and Vacation Shutdown period in a timely manner. Management expressed their desire to provide employees with as much advance notice as possible. Therefore, after the announcement in February detailing which operations will be affected by the shutdown, all employees will be notified by local Plant Management, as soon as is practicable, as to whether or not they are scheduled to be working during the shutdown period. Should the circumstances change after an employee is informed, the new schedule as well as the changed circumstances will be communicated to the employee as soon as possible. In addition, when business conditions change and a plant is required to work after originally scheduled to be down, the plant will first try to meet their needs through the use of volunteers. Any problem in this area should be raised with the Group / Divisional Director of Labor Relations or the Corporation for review. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations Doc. No. 138 WORLDWIDE FACILITIES GROUP 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: Subject: Worldwide Facilities Group During the 1999 Negotiations, the parties discussed extensively the necessity to work together to narrow the competitive gap in the area of indirect labor functions. It was acknowledged that the Worldwide Facilities Group (WFG) is assuming greater responsibility to manage these functions at our plant sites and closed facilities. Further, the National Parties will establish a Joint Task Team at the GM-International UAW level under the direction of the GM-UAW Skilled Trades and Apprentice Committee to assess activities for best practices, establish targets and share information in this regard between locations. Suggested areas to assess include, but are not limited to, technical maintenance supporting production, non-technical maintenance, specialty maintenance, building construction and maintenance activities, machine/tool/equipment build, material, quality and manufacturing support activities. Costs incurred by the Joint Task Team efforts will be reimbursed by Joint Training Funds. The Joint Task Team will identify in more detail which activities to assess with potential for improvement primarily based off the benchmarking studies discussed in 1999 GM-UAW Negotiations. Other jointly identified studies may be utilized to assist in this project. National and local efforts in this regard will not supersede other existing provisions of the National Agreement. The parties also recognize the significance of this activity with potential of having major impacts on the competitive position of GM. Therefore, where a plant continues to attain jointly established targeted improvements, reduce costs and increase efficiencies, the Worldwide Facilities Group (WFG) commits to not having outside contractors perform the activities, manpower permitting. The Union, for its part, commits to assisting in implementing best practices and other results of studies beneficial to our locations. This understanding does not supercede the existing rights of the local parties to implement modifications to related business activities upon mutual agreement. Furthermore, the Union expressed concern that the Corporation might choose to sell or spin-off the Worldwide Facilities Group (WFG) after it has assumed the responsibilities outlined above, which would impact a number of UAW-represented employees and their jobs. In this regard, the Corporation assured the Union there is no intent to sell or spin-off the Worldwide Facilities Group (WFG) or activities for which they are responsible. Finally, the Union was assured that the Worldwide Facilities Group (WFG) and its supervision will be reminded of their responsibility to be guided by all of the applicable provisions of the current GM-UAW National Agreement, including but not limited to, the provisions addressing sourcing and subcontracting. The parties may determine a need to utilize the Quality Network, particularly the QNPM activities. Any problems regarding the above should immediately be brought to the attention of the respective Group Labor Relations Staff and/or the Corporate Labor Relations Staff and/or the International Union, UAW. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations Doc. No. 139 Near Miss Incidents 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 current negotiations, the joint parties discussed the importance of reporting, investigating, evaluating, and determining corrective actions for “Near Miss” incidents which occur in the workplace. The joint parties recognize that the foundation of any successful safety process rests with a cultural atmosphere that allows employees to bring potentially hazardous situations to the attention of management in order to achieve timely correction. This line of communication can only be achieved if employees are free to discuss “Near Miss” incidents with supervision without far of reprisal. To this end, the Corporation will instruct Management at each facility: On the importance of reporting “Near Miss” incidents. To include near misses as part of the current incident investigation process including corrective action. To use counseling in lieu of discipline in those cases where an employee immediately self-reports a “Near Miss” incident involving a possible violation of safety rules. In addition, the National Joint Committee will issue a communication in the form of Safety Talk and/or other materials to encourage employees to immediately report near misses to their supervisor. Any issues arising from this document should be resolved in accordance at the appropriate level, i.e., Plant Safety Review Board, Divisional Review Board, and National Joint Committee. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations Doc. No. 140 PRODUCT DEVELOPMENT AND TRANSFORMATION 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: Subject: Product Development and Transformation During these negotiations the parties discussed various issues related to product development and product transformation. The Corporation and the Union recognize that future jobs depend on, among other things, continuing investments in product development, Shifting markets, changing consumer tastes, new governmental regulations, international harmonization of such requirements, and a host of other factors have a direct impact on vehicle development and manufacturing. The products manufactured and services delivered must meet evolving customer preferences and demands at a competitive price. The Corporation fully understands the Union’s concerns relative to investment in new products and services, and that such investments, while absolutely necessary, may not alone guarantee good future jobs. New products require additional skills, spur changes in labor demand, and entail new sourcing decisions. The parties acknowledge that involving the Union at the earliest stages of the product development cycle is key to attaining job security while meeting the global challenges of improved quality, seed to market, product innovation, and lowering total costs. To that end, the Corporation as been, and continues to be fully committed to working with the Union to seek and identify appropriate jointly developed technical training programs that will match new skill requirements with evolving technologies, products and service3s, along with the implementation of new programs to cushion unavoidable dislocative effects of rapid product transformation and development. The Corporation recognizes that working together will help preserve and grow good paying jobs for all current and future UAW-represented employees at General Motors Corporation. In preceding National Agreements and during these negotiations, the parties have recognized the importance of the Union’s role and involvement in the product development cycle and product transformation through provisions, such as Appendix L-Sourcing which provide a mechanism for early UAW involvement in the Corporation’s plans to proceed with a new or redesigned vehicle. To that end, it is understood and reaffirmed that early during the product development cycle, matters such as sourcing patterns, possible changes in assembly, sub-assembly, stamping, powertrain and other component sourcing patters, possible insourcing opportunities, and technology which may impact the represented work force will be review with the International Union in accordance with the provisions of Appendix L-Sourcing. Such early and up-front involvement will allow the Union to continue to be provided with current and anticipated major product developments/product transformations that are having, are expected to have, or could potentially have an effect on employment levels such as projected change4s in the major components for motor vehicles (e.g. shift to new propulsion technology and energy storage devices), in materials (e.g. increased use of plastics and/or aluminum in body panels, shift to aluminum castings), in assembly and design (e.g. for easier assembly/manufacturing methods and for disassembly for recycling purposes). Further, the Union’s early involvement during the product development process allows for discussions relative to issues such as the impact of a traditional gas-fueled internal combustion engine vehicle, and, for example, the comparable electric, hybrid electric, fuel cell, or dedicated and flexible alternative-liquid-fuel vehicle with respect to major components, materials, and assembly methods. In each case, the Corporation will indicate the extent to which changes in specifications will be handled through the revamping of existing UAW-GM operations, by means of technology residing in other divisions of the Corporation or by outside sourcing arrangements. Finally, it is recognized that Appendix L-Sourcing provides an avenue for discussions as early as practicable in the product development cycle relative to projected production volume of new materials, components, and products, and the potential impact, if any, on UAW-represented jobs. Very truly yours, Gary L. Cowger Group Vice President - Labor Relations
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