Union, General Motors confident they can reach contract deal

Source: AP

By TOM KRISHER

DETROIT (AP) — It was all smiles and optimism Monday as the United Auto Workers union opened contract talks in an official handshake ceremony with General Motors.

But the glad-handing may not last long with both sides a long way apart on a number of financial issues.

GM and Ford want to cut labor costs that are $8 to $9 per hour higher than U.S. plants owned by Honda and Toyota, while Fiat Chrysler wants to keep its costs stable. The union also wants pay raises for longtime workers, an end to lower pay for entry-level workers and new product guarantees what would create jobs at U.S. factories.

Despite the differences, union officials and GM executives said they were confident at a Monday ceremony that they could negotiate a deal that will make both sides happy.

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General Motors CEO Mary Barra, left, and United Auto Workers President Dennis Williams, take part in the ceremonial handshake to open contract negotiations Monday, July 13, 2015, in Detroit. This year's talks are expected to be the toughest in recent memory. (AP Photo/Paul Sancya)

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