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MAIN INDEX Doc. No. 40 MEMORANDUM OF UNDERSTANDING QUALITY NETWORK During the course of prior negotiations. General Motors and the International Union. UAW, held extensive discussions about the quality of our products and services There is ongoing recognition on the part of both parties to the National Agreement that the cornerstone of job security for all General Motors employees is the design, engineering, and manufacturing of the highest quality, customer-valued products and services. This is reflected in the extensive efforts both parties have devoted to the subject of quality, both on the national and local levels, exemplified by the formation and institution of the UAW-GM jointly developed Quality Network process. The Quality Network process is General Motors' only Total Quality Management System utilized at UAW-represented locations. Further, the parties recommitted themselves to the ongoing implementation of the Quality Network. This jointly developed quality improvement process emphasizes customer satisfaction and enthusiasm, continuous quality improvement and elimination of waste in the design engineering and manufacturing of products and services provided. During the past several years, the Corporation in cooperation with UAW leadership, together with the men and women of General Motors, have worked together within a spirit of teamwork to improve product and service quality. This spirit of cooperation has resulted in substantial improvement in the quality of the Corporation's products and services. The parties recognize that the design, engineering and manufacturing of the highest quality, customer-valued products and services is essential to secure the Corporation's position in the global market and assure job security. The Corporation stated that high-quality products and services have to be the result of a total quality improvement process if General Motors is to continue to be the world leader in transportation products and related services. Accordingly, General Motors' process for total quality management is the Quality Network-the one process for total customer satisfaction and enthusiasm utilized at UAW-represented locations. Although Management has the ultimate responsibility for the Quality Network, it is recognized that UAW leaders and members are valuable partners in the development of the process, the action strategies, and its implementation plans. This relationship is reflected in the extensive efforts both parties have devoted to the subject of quality, both on the national and local levels, exemplified by the institution of quality councils at appropriate levels throughout the GM North America (GMNA) Region, Electro-Motive Division, and Allison Transmission Division. It is recognized that the point where product design, technology, process and materials come together and must work in harmony is at the worker/supervisor level in the organization. High-quality products and services result from a well-managed process that motivates employees to work together within a spirit of teamwork to continuously improve customer satisfaction and enthusiasm. In this process, it is recognized that seeking opportunities for continuously improving product and service quality must be the foundation for customer satisfaction. It is acknowledged that it is ultimately Management's responsibility to establish and assure product and service quality requirements. Further, it is Management's responsibility to provide the processes for continuous quality improvement that support all employees based on the Beliefs and Values as recorded in the General Motors Corporate Policy Manual referenced as "Quality Network" (revised 1/10/95) This manual outlines specific policies to be followed throughout General Motors Corporation and states in part: "Guided bar the Beliefs and Values implementation of the Quality Network will lead to the highest satisfaction of the ultimate customers-those who buy GM products and use our services This value system represents significant expectations. It is crucial that behavior is aligned with these values and that decisions and actions are tested against them. We must constantly monitor our behavior to be certain our actions are consistent with the commitments that have been made to the men and women of General Motors." It is recognized that performance of high-quality work is everyone's responsibility and as a result, it is intended that the Quality Network Representatives and UAW leadership working together with local management will reinforce other ongoing quality improvement activities. The parties also discussed the necessity for all GM employees to take individual responsibility for product and service quality. Management's business planning process will include the necessity for providing employees with the appropriate training methods and stems materials and equipment in an appropriate environment based on the Quality Network Beliefs and Values to perform their work. It is then incumbent upon employees to exercise diligence and properly perform their work to produce the highest quality, customer-valued products and services. It is only through personal commitment from every GM employee to provide the highest quality, customer-valued products and services that we will satisfy our customers and maintain job security for all. Quality Council leadership at all levels within the GMNA Region, Electro-Motive Division, Allison Transmission Division and the UAW will review and apply the training and principles set forth in the Quality Network Environment Action Strategies to assure the necessary level of understanding to lead this effort. The general guidelines for the parties to provide additional snort to employees in this qualm improvement process are as follows: I. Quality Network Structure During the term of the 1993 GM-UAW National Agreement, restructuring_ within the Corporation resulted in the NAO UAW-GM Quality Council being renamed the "UAW-GM Leadership Quality Council." The following represents the Quality Network Structure: A. The UAW-GM Leadership Quality Council is co-chaired by the President and Chief Operating Officer of General Motors Corporation the President of the GM North America Region and the Vice President and Director of the UAW General Motors Department. All Group/Divisional Quality Councils, as listed herein will be subject to and in compliance with the direction and support provided by this Council for Quality Network activities. The UAW-GM Leadership Quality Council membership includes representatives from the GMNA Region Strategy Board and designated UAW leadership. The UAW-GM Leadership Quality Council will meet a minimum of twice per year. The responsibilities of the UAW-GM Leadership Quality Council include, but are not limited to: 1. Providing direction and support for Quality Network activities, 2. Establishing annual objectives and goals, 3. Utilizing appropriate common measurements to monitor progress toward accomplishing the annual Quality Network Objectives and Goals as agreed to by the Council, 4. Reviewing Group/Divisional status reports on gap closure initiatives for the annual Quality Network Objectives and Goals. B. In addition, the UAW-GM Leadership Quality Council will review company-wide new management quality or productivity improvement programs potentially involving UAW-represented employees prior to assigning resources for development and implementation. These reviews will extend to the UAW the opportunity to provide input into management's plans and to discuss the union's support and involvement. It is management's desire to implement all such quality improvement processes cooperatives with UAW leadership at all levels. C. Similar reviews and opportunities for involvement in new management quality or productivity improvement programs or utilization of consultants, potentially involving UAW-represented employees, will be provided at the appropriate .Quality Council level. This review will assure the UAW opportunity to comment on management's plans and to discuss the union's support and involvement. D. Management recognizes that UAW input to such improvement programs may create opportunities for collaboration and support. Accordingly, in an effort to avoid parallel programs, the parties agreed to establish a joint committee comprised of management red representatives from the Quality, Reliability and Competitive Operations Implementation organization and the co-directors of the UAW-GM Leadership Quality Council Support Staff to discuss such opportunities for collaboration and support and to discuss and resolve issues that may arise. E. In the event such new company-wide management quality or productivity improvement programs that the Union has agreed to support require training and/or instructional materials the co-directors of the _UAW GM Leadership Quality Council Support Staff will assign appropriate resources to work with the designated management content experts for developmental purposes Once approved by the development team the training and/or instructional materials will be finalized by such co-directors for inclusion in the UAW-GM Quality Network training materials. II. Group/Divisional Quality Council Meetings A. In order to provide for meaningful discussions, regular meetings as set forth below will be scheduled by the Quality Council Co-chairs at all Quality Council levels consistent with the direction provided by the UAW GM Leadership Quality Council. Attendance by co chairs is rewired in order to maintain organizational focus on continuous quality improvement and ongoing communications. B. The Group/Divisional Ouality Councils are as follows: 1. GM North America Region • GM Truck Group • GMNA Car Group • GM Technical Centers • GM Metal Fabricating Division • GM Powertrain • Service Parts Operations 2. Additional Quality Councils • Allison Transmission Division • Electro-Motive Division • Other Quality Councils deemed appropriate by the co-chairs of the UAW-GM Leadership Quality Council C. The Group/Divisional Quality Councils will meet a minimum of four times per year. The General Managers/Vice Presidents for the above Group/Divisional Quality Councils and the assigned UAW International Servicing Representative from the GM Department will co-chair these scheduled meetings The UAW International Representative from the General Motors Department assigned to Quality Network and the Group/Divisional Management counterpart alone with the Group/Divisional Co-chairs will determine the membership for such Quality Council meetings. In addition, the designated Management representative from the UAW-GM Leadership Quality Council Support Staff will also be a member of the.-Group/Divisional Quality Council D. These Quality Council meetings will be supplemented by a Group/Divisional leadership meeting to be held at least once per year. Additional meetings may be scheduled by mutual agreement of the Group/ Divisional Quality Council Co-chairs The General Motors Group Vice President and designated UAW International Servicing Representative will co chair this meeting. Attendees will consist of the following: • Group/Divisional Quality Council members • Group/Divisional Quality Network Representatives. • Plant Managers • Plant Personnel Directors • UAW International Regional Representatives. • Local Union Presidents, • Local Union Shop Chairpersons • UAW Document 46 Quality Network Representatives) and Management counterpart(s). E. The responsibilities of the Group/Divisional Quality Councils include but are not limited to: 1. Preparing and monitoring specific business and action plans to accomplish the annual Quality Network Objectives and Goals and reviewing progress. 2. Providing direction and support for Group/ Divisional Quality Network activities. 3. Reviewing Plant/Staff status reports on can closure initiatives for the annual Quality Network Objectives and Goals. 4. Submitting _a status report to the co-directors of the UAW-GM Leadership Quality Council Support Staff on gap closure initiatives prior to and for review at each UAW-GM Leadership Quality Council Meeting. F. Quarterly meetings with their respective Document 46 Quality ~Network Representatives) and their Management counterpart(s) will be coordinated by the UAW International Representative from the General Motors Department assigned to Quality Network and his/her Group/Divisional Management Quality Network counterpart. G. The Group/Divisional Quality Network Representatives will have responsibilities consistent with the "Roles and Responsibilities and Personal Development Guidelines for Quality Network Representatives" (QN-1455). III. Plant/Staff Quality Councils A. Plant/Staff Quality Councils will meet a minimum of once per month and shall consist of the following: • President of the Local Union, • Shop Committee Chairperson and members of the Shop Committee, • UAW Regional Servicing Representative, • Plant Manager, • Personnel Director, • Other appropriate Management Representatives, • Joint Activities Representatives where provided. And, • UAW Document 46 Quality Network Representative(s) and their management counterpart(s). B. The responsibilities of the Plant/Staff Quality Councils include, but are not limited to: 1. Preparing specific business and action plans to accomplish the annual Quality Network Objectives and Goals and reviewing progress. 2. Providing direction and support for plant/staff Quality Network activities. 3. Reviewing gap closure initiatives for the annual Quality Network Objectives and Goals 4. Supporting training for and the implementation of the Quality Network Action Strategies. 5. Submitting a monthly status report to the _Group/Divisional Quality Council Co-chairs on gap closure initiatives. IV. Quality Network Representatives Roles and Responsibilities A. Management Representatives will be assigned and will be provided appropriate time and authority to perform the required management Quality Network responsibilities It is recognized that the duties of all Quality Network Representatives are to assist in the implementation of the Quality ,Network process and related action strategies as directed by the Plant/Staff Quality Council. B. Additionally, the Quality Network Representatives will support the principle that all employees have a responsibility for product and service quality by exercising due care and diligence in performing their duties as follows: I. Understanding the Quality Network Action Strategies. 2. Coordinating achievement of the annual Quality Network Objectives and Goals with the Plant/Staff Quality Council including but not limited to: • Supporting balanced implementation of the Leadership Initiatives to: • Build a Supportive Environment. • Create an Organization-Wide Customer Focus. • Synchronize the Organization. And • Detect Solve and Prevent Quality Problems. 3. Minutes of all meetings will be taken and distributed to members of the Quality Council 4. Assisting in the overall implementation of the ualit3r Network process consistent with the "Roles and Responsibilities and Personal Development Guidelines for Quality Network Representatives" (QN-1455) C. Quality Network Representative Workshops may be scheduled during the term of this Agreement as determined by the Vice President and Director of the UAW-GM Department and the Group Vice President - Labor Relations. D. The Quality Network Representatives will receive appropriate training necessary to effectively perform his/her duties. E. Each Quality Network Representative will be required to attend appropriate personal skill enhancement training sessions, including those offered at the Center for Human Resources, associated with his/her responsibilities. Guidelines for such training and method of delivery have been established and communicated to the Quality Network Representatives In addition, the parties agreed to investigate additional internal and external resources for the development of training for advanced technical skills and certification for Quality Professionals. F. During overtime hours, such Quality Network Representatives will be scheduled to perform Quality Network-related activities if they would otherwise have work available in their equalization groin V. Product Quality Resolution Process A. The parties also discussed employees having opportunity to raise product quality concerns in the course of carrying out their required work assignments. It is recognized that such concerns require proper attention and response in the spirit of being potentially valuable contributions to product quality improvement B. As a result, the Plant/Staff Quality Council at each location will implement a process for employees to voice their product quality concerns) independent of the grievance procedure, for timely resolution of such concerns based on the following: 1. Employee/supervisor discussion to attempt to resolve concern, consulting as rewired with plant duality resources. 2. If unresolved, the District Committeeperson, if requested, will assist in the resolution of the employee's concern. 3. The supervisor and/or District Committeeperson may request the assistance of the Quality Network Representatives to participate in the resolution of the concern 4. Thereafter, if unresolved the concern will be discussed with the Plant/Staff Quality Council at the next meeting. 5. If unresolved, either Plant/Staff Quality Council Co-chair will request the issue to be referred to the co-chairs of the next higher level Quality Council 6. Thereafter, such concerns if unresolved will be referred to the UAW-GM Leadership Quality Council for discussion. 7. The Quality Network Representatives will advise the Plant/Staff Quality Council on the status of quality concerns referred to them 8. Feedback regarding the status of the employee concern will be provided to the originating supervisor and the employee on a regular basis by the Plant/Staff Quality Network Representatives until the concern is resolved. VI. Employee Vehicle Assistance Contact (EVAC) A. During these negotiations the parties discussed issues regarding employee personal vehicle concerns In that regard the parties agreed that 1. Employees having quality concerns with their personal GM vehicles or the vehicles of customers with whom they come in contact are encouraged to utilize currently available dealer and marketing division channels; 2. If unresolved, such concerns may be referred for assistance to a representative designated by the Plant/Staff Quality Council within existing Corporate Guidelines and Policies; 3. Such representatives will be periodically pro vided a summary of current recall and special policy notices via hard copy distribution or through electronic medium such as CD-ROM or the Quality Network Website Guidelines for access and Quality Network Representative assistance for retrieval will be communicated to the Employee Vehicle Assistance Contact (EVAC) representatives; 4. Further, currently developed process awareness training materials will be made available on a request basis; 5. This process will be communicated to dealers to ensure their awareness and encourage their cooperation. B. The parties agreed to study the opportunity for even greater UAW leadership and employee involvement in the promotion of GM products services and the customer assistance process The co-directors of the UAW-GM Leadership Quality Council Support Staff will develop a plan to accomplish this goal The plan will be reviewed with the UAW-GM Leadership Quality Council for approval. VII. Quality Network Suggestion Plan A. As a result of the UAW-GM joint administration and ongoing support of the Quality Network Suggestion Plan significant improvement in the areas of participation savings and processing time were experienced The Company informed the Union that Management would continue to implement the Quality Network Suggestion Plan Action Strategy as the single suggestion process in all UAW-GM plant and staff locations The parties further recognized the necessity for joint leadership involvement at the plant and staff levels in order to gain the support and confidence from employees to submit their ideas and, in turn. to achieve mutually established Quality Network Objectives and Goals. B. The parties discussed at length the purpose of the Suggestion Plan Both parties agreed that the purpose of the Suggestion Plan is to enhance job security for all employees, not to reduce employment levels. Therefore consistent with the objectives of the Quality Network Suggestion Plan guidelines, the parties agreed to place special emphasis on: • Generating ideas that contribute to a safe work environment for all employees. • Encouraging greater .participation of employees in all aspects of the business. • Recognizing employees for their ideas. • Encouraging cost reduction and continuous improvement in all aspects of our business. • Encouraging a greater level of teamwork through recognition of team suggestions. VIII. Planned Maintenance The UAW GM Leadership Quality Council has directed via the Quality Network Objectives and Goals, that the Quality Network Planned Maintenance Action Strategy is to be utilized at all UAW-GM locations as the one process for planned maintenance. The purpose of the Quality Network Planned Maintenance Action Strategy is to involve people to improve safety. quality throughput, and responsiveness and to reduce costs thereby enhancing overall job security. The parties further agreed that Quality. Councils at all levels will continue to measure and guide progress toward full implementation. IX. Corporate Marketing Campaigns A. Management will continue to provide the union the opportunity for input into Corporate Marketing campaigns. The parties discussed at length the importance of domestic vehicle advertising campaigns involving or depicting UAW-represented GM employees, and the positive impact the message of such campaigns can have on our employees and customers. The Corporation informed the Union that it will schedule meetings between the leadership of GM's Vehicle Sales Service and Marketing (VSSM) Group and the Vice President of the UAW-GM Department and/or a designated representative on an as-needed basis to review future advertising and marketing efforts. During such reviews the Union will be provided an opportunity to input into such efforts. B. The parties recognize the benefits of providing the Union the opportunity for input to the development and implementation of national sales promotion activities providing for joint participation by bargaining unit and salaried employees. These activities include the Ambassador Program, Auto Shows, Motorsports and the Olympics, Management informed the Union that it would continue the process utilized during the term of the 1996 National Agreement. Similar Local Plant or Staff initiatives will be discussed by the Plant/Staff Quality Councils. C. The co-directors for the UAW-GM Leadership Quality Council Support Staff will work with appropriate Management representatives from the Vehicle Sales, Service, and Marketing Group to explore ways to develop an ongoing external media campaign reinforcing UAW-GM cooperation and its role in improving the quality of General Motors' products and services. X. Vehicle Development Process The UAW and GM have jointly developed the Four Phase Vehicle Development Process Action Strategy. The UAW participates in this process. To provide an awareness of future development and direction, GMNA leadership will provide the Vice President of the UAWGM Department with a GM product and capacity plan review on a periodic basis. New developments will be reviewed periodical, as required. XI. Labels and/or Decals During prior negotiations, the Union expressed a desire for UAW members who have contributed significantly to improved product quality to be permitted to display on completed assembled vehicles and packaging and shipping containers a joint label or decal certifying that the product is proudly built by GM workers who are members of the UAW. During the current negotiations, the Corporation agreed to continue this approach to employee recognition and assured the Union of its commitment to employee recognition through such practices in the component plants. XII. Issues Resolution Process Any issues related to the foregoing may be referred to the co-directors of the UAW-GM Leadership Quality Council Support Staff for resolution. including unresolved Quality Council concerns requiring cross-organization involvement prior to discussion at the UAW-GM Leadership Quality Council. IN WITNESS WHEREOF the parties hereto have caused their names to be subscribed by their duly authorized officers and representatives. International Union, UAW Richard Shoemaker Jim Beardsley Henderson Slaughter Richard J. Monczka Tom W. Walsh General Motors Corporation Gary L. Cowger Dean W. Munger Jay C. Wilber
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