CABLE: "UAW DETROIT"                                                                                                                                            Solidarity House

8000 EAST JEFFERSON AVE

DETROIT, MICHIGAN 48214

PHONE (313- 926‑5000)

 

 

                   INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE & AGRICULTURAL IMPLEMENT WORKERS OF AMERICA – UAW

                  

STEPHEN P. YOKICH, PRESIDENT                                                        ROY O. WYSE, SECRETARY‑TREASURER

 

VICE‑PRESIDENT:      VICE-PRESIDENTS:  CAROLYN FORREST                                 JACK LASKOWSKI                     ERNEST LOFTON                      RICHARD SHOEMAKER

 

 

 

 

 

 

 

 

Greetings:

 

This material was prepared by the UAW General Motors Department in conjunction with our continuing program of utilizing the Subcouncils Forum for the purpose of educating and familiarizing local union representatives with the provisions of the UAW­GM National Agreement. These Educational Subcouncils have proven successful and the information conveyed has been of significant help to our members.

 

This Education Outline is provided to aid in the correct and proper administration of the

contract to ensure that our members receive all the benefits to which they are entitled

under the Agreement.

 

The interpretations and recommendations set forth in this Educational Outline represent the best opinions of the UAW General Motors Department as to what the Agreement means and how it can best be applied to enhance the job security of the workers we are privileged to represent.

 

Fraternally,

 

Richard Shoemaker

Vice President and Director

UAW General Motors Department

 

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TABLE OF CONTENTS

 

                        Appendix L ..................................................................................................... 1

                        Paragraph 46(l) ................................................................................................ 6

                        Document 120 ................................................................................................. 7

                        Document 125 ................................................................................................. 8

                        Document 127 ................................................................................................. 9

                        History .............................................................................................................. 10

                        1982 National Agreement ................................................................................ 11

                        1984 National Agreement ................................................................................ 12

                        1987 National Agreement ................................................................................ 13

                        1990 National Agreement ................................................................................ 15

                        1993 National Agreement ................................................................................ 18

                        1996 National Agreement ............................................................................. 21

                        Corporation Commitments .............................................................................. 22

                        Insourcing ........................................................................................................ 26

                        Outsourcing ..................................................................................................... 28

                        Future Product Sourcing ................................................................................. 34

                        Closing Paragraph ‑ Commitments ................................................................ 37

                        Addressing Problems ...................................................................................... 38

                        Settlements

                        Temporary Outsourcing .................................................................................. 39

                        Second Tier Suppliers ..................................................................................... 40

                        Subsidiaries, Joint Ventures, Etc . ................................................................... 41

                        UAW Financial Training ‑ Section 7

                        (Costing for Sourcing Decisions)

 

APPENDIX L

 

SOURCING

 

During the 1996 negotiations, the Union raised numerous concerns about the Corporation's sourcing actions and their impact on employment opportunities. To that end, the Corporation will work with and assist the Union at both the Local and International levels to preserve jobs, replace jobs which may be lost by outsourcing action and to create jobs for Protected employees and laid off employees. It is an objective of the Corporation to grow the business and to continue to rely upon its employees and facilities as the source of its products. During the life of the current Agreement, the Corporation will advise, in writing, the Union members of the Sourcing Committee of the Labor Policy Board meeting results relative to sourcing recommendations, including the number of potential jobs affected. Additionally, data regarding incoming and outgoing work will be given to the International Union in a quarterly meeting. (The Corporation will provide inquiry access to the International Union through the use of a computer terminal.) In this manner, the parties can judge the success of mutual efforts toward improved job security. The Corporation agrees to incorporate the procedures and structure outlined herein when making sourcing determinations during the current Agreement.

 

The rationale for sourcing actions will consider the criteria of quality, technology, cost, timing, statutory requirements, occupational and related environmental health and safety issues, the impact on long‑term job stability, the degree to which the Corporation's resources can be allocated to further capital expenditures, the overall financial stability of affected facilities, and the impact on related facilities. Other factors considered by the Corporation before a final sourcing decision is made will include the effect on employment, and job and income security costs, on both a short and long‑term basis. Such criteria shall give equal weight to the full impact of a sourcing action on General Motors‑UAW represented employment levels and the job and income security of General Motors‑UAW represented employees. The National parties will jointly further develop the above criteria to be used to address sourcing issues. In developing this criteria transfer pricing profits will not be considered in making sourcing decisions. Only appropriate return on investment and burden will be considered.

 

Following the development of the sourcing criteria, the National Sourcing Committee may form Joint Task Forces to ensure full implementation of such criteria throughout the Corporation and, on an as needed basis, to address any specific sourcing areas of concern identified by the Union. Pertinent criteria will be applied consistently in comparisons of internal and external supply capability. The International Union and where appropriate the local union will be provided full and timely access to all appropriate data, including financial information, that is pertinent to evaluate product competitiveness and contemplated sourcing. The Union agrees to keep all such information confidential until the Corporation consents to its

 

release. Further, in this regard, the plant Chairperson will designate in writing those Union representatives who will have access to the quote package and related information.

 

If the Local Committee cannot resolve a sourcing issue, it may file a grievance at the second step of the grievance procedure.

 

In addition, the following specific commitments have been made to address sourcing‑related job security concerns of UAW members:

 

1.         Insourcing

 

The Local JOBS Committee will discuss the practicality of insourcing, in whole or in part, work previously outsourced or new work which the Committee identifies as that which might be performed competitively within the location based on the criteria outlined above. To assist in this process, the International Union will be furnished a complete master file of commodities which will be used to generate a list of parts similar to those currently manufactured at the location that have been (1) outsourced from that location or (2) are currently manufactured by non‑GM/UAW suppliers for General Motors. This list will be updated and expanded to include supplier expiration dates, supplier location (city and state), annual volume, and Union affiliation if known and will be furnished quarterly or as otherwise agreed by the National Parties. Thereafter, the parties will initiate efforts to insource particular work consistent with the aforementioned criteria to create prospects for growth and to provide jobs for Protected employees and employees on layoff.

 

If it is established that certain work can be performed competitively judged by the above criteria, management will adopt the Committee's proposal and barring unique or unforeseen circumstances, bring the work in‑house. The Union shall thereafter obtain any necessary approval or ratification within 30 days of the decision to bring the work in‑house.

 

2.         Outsourcing

 

Outsourcing as used herein means the Corporation's sourcing of work from GM/UAW locations, including work connected with current, new or redesigned vehicles, fabricated parts, powertrain, and component products.

 

When the quoting process begins, the local Union at the affected location(s) will review and have access to the entire request for quotation package for this work along with cost book information. Upon receipt of this package at the plant, the Chairperson and the Personnel Director will indicate on the accompanying notice (Notice of Potential Outsourcing) that the information

 

has been received. This notice will include a description of the work involved and will be mailed to the Vice President and Director of the General Motors Department of the UAW, and the Vice President of Personnel, North American Operations.

 

Following receipt of the request for quotation package (or in the infrequent instances where a quote package is not utilized), the local parties will have the opportunity to jointly develop a plan to perform the work competitively, judged by the criteria listed earlier in this Appendix. The local Union will be provided full and timely access to all appropriate data, including financial information that is pertinent to evaluate product competitiveness and the potential sourcing action. Prior to submission of the initial quote response, the information contained therein will be reviewed by the local parties.

 

At the close of the quoting process, the local parties will be advised in writing of the most favorable quote response which best meets customer requirements and the terms and conditions contained therein. If this quote response is other than the one submitted by the affected location(s), a written notice will be issued to the Chairperson which includes the reason for the potential outsourcing, the quote price from the affected location, if applicable, the terms and conditions of the most favorable quote response, the potential jobs impact, and the anticipated impact date. Thereafter, the local parties will be given an additional 30 days, or longer when possible, to meet the terms and conditions of the quote response referenced above. A copy of this notice will be sent to the Vice President of Personnel North American Operations, and the Vice President and Director of the General Motors Department of the UAW.

 

If it is established that the work can be performed competitively, judged by the criteria listed earlier in this Appendix, Management will, barring unique and unforeseen circumstances, keep the work in‑house. The Union shall thereafter obtain any necessary approvals or ratification within 30 days of the decision to keep the work in‑house.

 

The sourcing authority will not enter into a contractual relationship with a non‑GM‑UAW supplier until such time as the designated management representative of the impacted location provides written verification that the above notification procedure and discussion by the JOBS Committee, has taken place.

 

Additionally, International Union input will be sought by the Corporation and its Groups and Divisions as early as possible in the outsourcing decision-making process in order to allow for more thorough discussion and to permit the parties to better assess the impact of outsourcing on the long‑term job stability of employees and the financial viability of given Corporate locations.

 

The Corporation agrees to a full disclosure to the International Union of the procedures utilized in sourcing activities.

 

3.         Future Product Sourcing

 

International Union input to early sourcing decisions will be sought by the Corporation's Groups and Divisions. In that regard, the International Union will be notified in writing by the appropriate Group or Division upon "Bubble Up Initiation Approval" to proceed with a new or redesigned vehicle, or a new engine or transmission. A comparable step for some components and subsystems is "Concept Initiation."

 

Semi‑annually, as a part of quarterly meetings referred to earlier in this Appendix, a confidential review will be held concerning future product programs which will identify new or redesigned vehicles, subsystems, or component parts. These semi‑annual meetings will be attended by the Vice President of Personnel, North American Operations, and the Vice President and Director of the General Motors Department of the UAW, both of whom may also be requested to attend additional meetings, if deemed appropriate by the National Parties. In reviewing future product programs, representatives from various Corporate disciplines: e.g., Marketing, Engineering, and Product Planning, may be invited to attend.

 

Following the notification, the members of the National Committee shall have responsibility for overseeing the interface with individual vehicle platforms and the powertrain division. The union representative for each car and truck group, Powertrain, Delphi Automotive Systems, and the Metal Fabricating Division will work with members of their respective organizations so as to gain information and knowledge and to provide input into sourcing discussions and sourcing determinations for those organizations.

 

When there is a need for a Union representative as specified above to interface with a component division relative to sourcing discussions at their organization, the contact should be made through the divisional industrial relations contact for that component division.

 

The Corporation agrees not to use the results of such discussions to obtain more attractive contract terms from outside suppliers in lieu of keeping the work in‑house.

 

If requested, higher level meetings or discussions on these matters will be scheduled.

 

The implementation of this process should provide the parties with the mechanism to take advantage of every opportunity to use internal resources and to create jobs for Protected employees.

 

The commitments expressed in this Appendix are intended to contribute significantly to our cooperatively working together to provide General Motors employees in the United States improved job security by growing the business.

 

POWERS OF THE UMPIRE

 

(46)(1) In making a decision on a case alleging a violation of Paragraphs (183a), (183b), (183c), (183e), Appendix F‑1, or Appendix L, the Umpire can only provide a remedy where the Umpire finds that (1) a violation of express commitments set forth in the above paragraphs, Appendix F‑1, or Appendix‑L has been established, (2) the established violation resulted from the exercise of improper judgment by Management, (3) an E.I.T.S. or Journeyman/woman employee, who customarily would perform the work in question has been laid off or was allowed to remain on layoff as a direct and immediate result of work being subcontracted, or (4) in the case of Appendix L, an employee has been laid off or was allowed to remain on layoff as a result of work being outsourced, or not being brought in‑house. The Umpire's remedy shall be limited to back wages for the affected employees as defined in (3) and (4) of this paragraph, and in the case of Appendix L, the Umpire may rule that the affected employees will be recalled and/or placed on regular productive work.

 

Doc No. 120

COORDINATION OF SOURCING EVALUATIONS

 

GENERAL MOTORS CORPORATION

 

November 2, 1996

 

Mr. Richard Shoemaker

Vice President and Director

General Motors Department

International Union, UAW

8000 East Jefferson Avenue

Detroit, Michigan 48214

 

Dear Mr. Shoemaker:

 

Subject: Coordination of Sourcing Evaluations

 

During these negotiations, the National Parties had extensive discussions regarding the implementation of Appendix L. In this regard, it was recognized that effective implementation is dependent in large part on the efforts of the local parties.

 

Both parties to this agreement acknowledge and commit that these matters should be viewed as high Priority at the local level. Access to confidential information such as quote packages and pertinent financial data is essential. Therefore, in order to facilitate the sourcing evaluation process and the effective preparation of a quote response, the Plant Personnel Director will assign coordination responsibility and authority to a designated local management representative. Such responsibilities may include identification of the appropriate management resources to respond to Union inquires, on a timely basis, and the scheduling of meetings, as required.

 

Very truly yours,

 

Gerald A. Knechtel

Vice President

 

Doc 125

APPENDIX EFFECTIVE DATE

 

GENERAL MOTORS CORPORATION

 

November 2, 1996

 

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 substantially altered the manner in which potential outsourcing initiatives were processed. Under this new process, Union involvement occurs much earlier than before and at a point where more meaningful input can be received. This change will require coordination between several management disciplines, some of which had little involvement under the previous process. In order to ensure proper implementation and recognizing that a Leadership Conference is currently planned for the third week in January 1997, the new Appendix L, Section 2 provisions will become effective February 24, 1997. Until the implementation of the new provisions of Appendix L, the provisions of the 1993 National Agreement will continue to apply.

 

Very truly yours,

 

Gerald A. Knechtel

Vice President

 

Doc No. 127

SOURCING EVALUATION

 

GENERAL MOTORS CORPORATION

 

November 2, 1996

 

Mr. Richard Shoemaker

Vice President and Director

General Motors Department

International Union, UAW

8000 East Jefferson Avenue

Detroit, Michigan 48214

 

Dear Mr. Shoemaker:

 

The parties to this agreement recognize the critical impact outsourcing proposals have on the parties' relationship at both the National and local level. In this regard, when potential outsourcing is under consideration, the local parties should have sufficient time to evaluate the proposals to insure that they have the opportunity to develop a plan to retain the work. During the discussions leading to the current Agreement, the sourcing process was modified to provide a more meaningful role for the Union in sourcing decisions through involvement in the request for quotation process. Under this process, which provides for earlier involvement, the Union will generally have as much time to evaluate methods to retain the work as the 150 day notification process provided under the 1993 National Agreement. In those instances where it is anticipated that less than 150 days will be required to complete the sourcing process, the Chairperson of the Shop Committee will be so advised.

 

However, in such instances where the Union believes that insufficient time has been provided for input into a pending sourcing decision, the matter should be referred to the National Sourcing Committee for further discussion.

 

Very truly yours,

 

Gerald A. Knechtel

Vice President

 

HISTORY

 

I.        Prior to the March 21, 1982 National Agreement there were no provisions in the contract that restricted the Company's right to determine the source of the components used in the building of its products.

 

A.       Its right to determine the source of vehicle components flowed from Paragraph (8).

 

II.       When the 1979 National Agreement was negotiated, General Motors built ‑ in the U.S. and Canada ‑ approximately 95% of the components used in the vehicles it produced and assembled in these two countries.

 

A.       While there had previously been sourcing of parts to companies outside GM, both domestic and foreign, there also was insourcing of components to GM plants in the U.S. and Canada.

 

III.      Beginning in early 1981 there were increased reports of loss of jobs from GM plants due to the outsourcing of work, while at the same time there were only limited reports of jobs being returned to GM plants.

 

A.      Investigation over a period of time disclosed that jobs were being sent to both domestic and foreign manufacturers ‑ many of which were non‑union.

 

(1)     The Corporation contended that some components could be acquired cheaper by outsourcing the work rather than by producing it in‑house.

 

(2)     The International Union determined that the problem had to be attacked through negotiations.

 

1982 NATIONAL AGREEMENT

 

I.        The March 21, 1982 National Agreement contained provisions covering both outsourcing and insourcing of work. (Document 93)

 

A.      The Corporation committed to a "shared desire" with the Union to preserve jobs, reestablish the need for lost jobs and to create new jobs. The Corporation further committed to an "earnest effort to maintain employment opportunities."

 

B.      Insourcing Provisions

 

(1)     The Corporation agreed to discuss the feasibility of insourcing components outsourced during the term of the 1979 National Agreement.

 

(2)     The burden of identifying these opportunities rested with the Union.

 

(3)     Management retained the right to determine whether or not they would accept the Union's proposal(s) to insource work.

 

C.      Outsourcing Provisions

 

(1)    The Union now received at least 60 day advance written notice of

contemplated major outsourcing.

 

(2)    Major outsourcing was defined as actions resulting in the permanent

layoff of more than 10% of a plant's population or 100 employees,

whichever is less.

 

(3)    The movement of work to GM plants in Canada was not considered

outsourcing.

 

(4)    The Union had 30 days from the notification to propose changes to

reduce labor costs and retain the work.

 

(5)    Management retained the right to determine whether or not they

would accept the Union's proposal(s) and retain the work.

 

D.      Initial Administration and implementation of these provisions were the responsibility of the local union bargaining committee.

 

1984 NATIONAL AGREEMENT

 

I.        The September 21, 1984 National Agreement contained revisions designed to increase the awareness of local union personnel when sourcing decisions were being contemplated.

 

A.      A JOB Opportunity Bank‑Security Program was created to protect eligible

employees against layoff caused by a number of factors including

outsourcing.

 

(1)      The JOBS Program provided a forum (the Local JOBS Committee) to regularly address mutual concerns pertaining to sourcing decisions.

 

B.      Insourcing Provisions

 

(1)     The Corporation agreed to discuss the practicality of insourcing work outsourced since 1979. This was an expansion on the language of the 1982 Agreement which utilized the term "components."

 

(2)     The identification of potential insourcing opportunities became the

joint responsibility of the Local JOBS Committee.

 

(3)     Management retained the right to determine whether or not they

would accept the Committee's proposal(s) to insource work.

 

C.      Outsourcing Provisions

 

(1)     The number of affected jobs which required a 60 day written notice

was substantially changed to decisions which affect 25 or more

existing jobs.

 

(2)     A detailed procedure for the 60 day written notice was negotiated

that included a clear outline of management's procedural obligations.

 

(3)    Management retained the right to determine whether or not they would accept the Committee's proposal(s) and retain the work.

 

D.      The Local JOBS Committee was empowered to discuss sourcing issues.

However, the initial responsibility for administration and any necessary

implementation continued to reside with the local bargaining committee.

 

E.      In 1984 negotiations the Sourcing Letter was renumbered as Document 89.

 

1987 NATIONAL AGREEMENT

 

I.          The October 8, 1987 National Agreement expanded the relationship between sourcing and the JOBS program and substantially increased the involvement of the joint Local JOBS Committee in discussions and decisions regarding sourcing.

 

A.        The Corporation agreed to modify its historical sourcing practices in accordance with the goals and guidelines contained in the Agreement.

 

B.        Sourcing criteria appeared for the first time in 1987, however, except for the requirement to give "equal weight" to long term job security, there were no provisions to jointly define these criteria.

 

C.        The Agreement provided for an "appeal" to the National parties in the event   the Local Committee(s) were unable to resolve a sourcing issue. The Corporation's position was that the Union had no further recourse beyond

            this appeal procedure.

 

D.        Insourcing Provisions

 

1.         The language regarding work to be evaluated for insourcing was

expanded to include new/replacement components and vehicles.

 

2.                  The restriction in the language on management considering

proposals where labor costs could make a difference was removed. This was a recognition by the Corporation that the issue of "competitiveness" is far broader than just labor costs. (The same changes are found in the outsourcing provisions.)

 

3.         Management retained the right to determine whether or not they

would accept the Committee's proposal(s) to insource work.

 

E.        Outsourcing Provisions

 

1.         The 1987 Agreement, for the first time, considered work sourced

            from UAW/GM locations to GM plants in Canada as outsourcing".

 

2.         The 25 or more employee restriction on management's obligation to provide written notice was removed and the 60 day requirement was expanded to 90 days.

 

3.         The 30 day provision for Union proposals to retain the work was expanded to 45 days.

 

4.         The Corporation committed to full and timely access, following the 90 day notice, to all appropriate data including financial information to evaluate contemplated sourcing.

5.         New language was introduced giving recognition to the National

            parties' responsibility to assist in finding replacement work when the local parties were unsuccessful.

 

6.         Management retained the right to determine whether or not they would accept the Committee's proposal(s) and retain the work.

 

F.         Future Product Sourcing

 

1.         This issue was first addressed in the 1987 Agreement.

 

2.         The Corporation agreed to seek early International Union input as alternate sources were being discussed in connection with future product programs.

 

G.        Unpublished Letter

 

1.         The Corporation and the International Union agreed to determine

which of the previously approved sourcing decisions (which impacted

25 or more jobs) would be appropriate for restudy.

 

2.         This letter stemmed from the parties renewed commitment to create and preserve jobs.

 

3.         These studies were to be completed within six months of the

effective date of the Agreement.

 

1990 NATIONAL AGREEMENT

 

 

I.        The October 1, 1990 National Agreement Sourcing language was drastically modified and was made part of the main body of the Agreement (Appendix Q. The language of Paragraph 46 (1) was also modified to accommodate the specific arbitration details.

 

A.      The Corporation expanded their commitments to job security, agreeing to

work with the International and Local Unions to:

 

Preserve jobs Replace jobs lost by outsourcing actions Create jobs for Bank and laid off employees Grow the business Continue to rely upon UAW/GM employees and facilities as the source of the Corporation's products

 

B.      The Corporation agreed, for the first time, to work with the International

Union to jointly define the criteria to be used in making sourcing decisions.

 

1.       Transfer pricing profits were specifically excluded in making sourcing decisions and only appropriate return on investments and burden can be considered.

 

C.      All appropriate data to evaluate product competitiveness and contemplated sourcing must now be furnished to the International Union.

 

D.      Violations of management's sourcing commitments and obligations contained in the Agreement are subject to the grievance procedure and are arbitrable.

 

1.       Grievances should be filed at the second step of the grievance procedure.

 

E.      Insourcing Provisions

 

1.       The language was expanded to include work previously outsourced, new work and work similar to in‑house work that is currently being performed by non‑GM/UAW suppliers for General Motors.

 

2.       The Corporation agreed to provide the International Union with a list of work (defined in (1) above) within 90 days of the effective date of the Agreement. This list was to be used to assist the parties in the insourcing of work.

 

3.       If the potential insourcing opportunity could be performed competitively, judged by the jointly developed criteria,  management is obligated to adopt the Committee's  proposal and bring the work in‑house.

 

¨      Exceptions to this requirement could only occur in "unique or unforeseen circumstances".

 

¨      This change removed management's unilateral (Paragraph 8) right to determine whether or not they would adopt the Committee's proposal(s).

 

4.       The time limits for the Union obtaining necessary approvals or ratification was expanded to 30 days.

 

F.       Outsourcing Provisions

 

1.       The focus of these provisions was substantially changed by removing the following provisions: to keep the Union informed of outsourcing decisions".

 

¨      Management's contractual requirement is to notify the Union when they are CONTEMPLATING outsourcing.

 

2.       The definition of outsourcing was changed to include not only current work, but new or redesigned vehicles, fabricated parts, powertrain and component products.

 

3.       The written notice requirement was expanded to 120 days. The notice requirements were changed to include all pertinent information at the time the notice was issued.

 

4.       The 45 day provision for Union proposals to retain the work was expanded to 60 days.

 

5.       If the potential outsourcing could be performed competitively, judged by the jointly developed criteria, management is obligated to adopt the Committee's proposal and keep the work in‑house.

 

¨      Exceptions to this requirement could only occur in "unique or unforeseen circumstances".

 

¨      This change removed management's unilateral (Paragraph 8) rights to determine whether or not they would adopt the Committee's proposal(s).

 

6.       The time limits for the Union obtaining necessary approvals or ratification was expanded to 30 days.

 

7.       The Corporation agrees to a full disclosure to the International Union of the procedures utilized in sourcing activities.

 

G.      Future Product Sourcing Provisions

 

1.       This section is new to the Sourcing language and provided greater opportunity to place new product work into UAW/GM plants.

 

2.       The Agreement required that the International Union be notified in writing at the point that "Group Concept Initiation" approval is given by the Group or Division.

 

¨      This notice is required in all instances involving new or redesigned vehicles, subsystems or component parts.

 

¨      This notice gave the Union opportunity to have input in future product sourcing discussions for the purpose of advantaging every opportunity to use internal resources.

 

3.       The language required that the Union and Corporation develop one generic process to implement these commitments.

 

¨      The generic process was to be in writing and be completed within 90 days of the effective date of the Agreement.

 

¨      The agreed upon process was to be forwarded to the Director of the GM Department of the UAW and the Vice President of Industrial Relations for the Corporation.

 

4.       Priority consideration will be given to design and processing systems since they have such a major impact on cost and quality.

 

H.      The last paragraph of Appendix L was a reaffirmation of the commitments

found in the first paragraph.

 

¨      Job security will be provided to UAW/GM employees by "growing the business".

 

1993 NATIONAL AGREEMENT

 

I.        The November 15, 1993 National Agreement Sourcing language was changed to reflect strengthened job security commitments, earlier notification and an expanded time period to address sourcing issues.

 

A.      In response to the Union's concerns, the Corporation strengthened its

          commitment to work with the Union to:

 

¨      Preserve jobs

¨      Replace jobs lost by outsourcing actions

¨      Create jobs for Protected employees and laid off employees

¨      Grow the business

¨      Continue to rely upon UAW/GM employees and facilities as the source of the Corporation's products.

 

B.      The Corporation agreed to incorporate the procedures and the structure outlined in Appendix L when making sourcing determinations during the term of the Agreement.

 

C.      The Corporation committed to work with the International Union to jointly define the criteria to be used in making sourcing decisions.

 

1.       This criteria will consider job and income security costs and will give equal weight to the impact of UAW/GM represented employment levels and the job and income security of UAW/GM employees.

 

2.       Transfer pricing profits are specifically excluded in making sourcing decisions and only appropriate return on investments and burden can be considered.

 

D.      The Corporation agreed to form Joint Task Forces to ensure full implementation of the developed criteria and to a consistent application in comparisons of internal and external supply capability.

 

E.      Violations of management's sourcing commitments and obligations contained in the Agreement are subject to the grievance procedure and are arbitrable.

 

1.       Changes were made to Paragraph 46 (1) regarding "affected employees" and the Umpire's remedy.

 

F.         Insourcing Provisions

 

1.         The language was expanded to include work previously outsourced, new work and work similar to in‑house work that is currently being performed by non GM/UAW suppliers for General Motors and supplier (contract) expiration dates.

 

G.        Outsourcing Provisions:

 

1.         The definition of outsourcing remained unchanged and includes work connected with current, new or redesigned vehicles, fabricated parts, powertrain and component products.

 

2.         The Agreement required the Corporation to notify the International Union and affected Local Union when a Request for Quote was issued.

 

3.         The written Appendix L notice requirement was expanded from 120 days to 150 days and must include all pertinent information at the time the notice was issued.

 

4.         The 60 day provision for Union proposals to retain the work was expanded to 90 days.

 

5.         The Agreement provided specific directions for proper notification to the Chairperson of the impacted location(s) and to the Director and Vice‑President of the UAW/GM Department.

 

6.         Additionally, the Corporation committed to seek Union input as early as possible to better assess the outsourcing impact upon employees' long term job stability.

 

H.        Future Product Sourcing Provisions

 

1.         The Corporation agreed to seek early International Union input to sourcing decisions, providing greater opportunity to place new product work into UAW/GM plants.

 

2.         The members of the National Committee have the responsibility for overseeing the interface with individual vehicle platforms and the powertrain division to provide input into Future Product Sourcing discussions and sourcing determinations.

 

3.         Future product sourcing representatives were provided for in this Agreement.

 

4.         Union platform representatives interface with component divisions through the divisional industrial relations contact for that component division.

 

5.         The Corporation agreed not to use the results of such discussions to obtain more attractive contract terms from outside suppliers in lieu of keeping the work in‑house.

 

6.         Higher level meetings or discussions could be scheduled as needed.

 

I.          The last paragraph of Appendix L was retained as a reaffirmation of the commitments found in the first paragraph.

 

¨      Job security will be provided to UAW/GM employees by "growing the business."

 

1996  NATIONAL AGREEMENT

 

PURPOSE

 

I.        The purpose of Appendix L is to provide a procedure and structure for the Corporation and the Union at all levels to be used when making sourcing determinations during the current Agreement. The procedure and structure contained in the language are designed specifically to protect and enhance UAW/GM employees' job security. This must be accomplished through proper evaluation and consideration of all factors involved in the sourcing of work before such decisions are made.