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Monday, Jul. 13, 1998

GM labor chief leaves strike negotiations

Plant-level talks continue, but company official's departure stalls settlement talks

By BRIAN S. AKRE
Associated Press

   FLINT, Mich. - High-level negotiations between General Motors Corp. and the United Auto Workers to end two crippling strikes stalled Sunday as GM's labor chief announced he was returning to Detroit.
   Gerald Knechtel said plant-level talks would continue and that he would remain available to talk to UAW leaders. But his departure from face-to-face negotiations with UAW Vice President Richard Shoemaker was a setback to settlement efforts.
   Knechtel said last week that GM hoped to cut a deal to end the strikes and resolve disputes at two other plants in Ohio and Indiana by this weekend, to coincide with the end of the company's two-week summer vacation shutdown.
   ``I was optimistic publicly on Thursday, and I had every reason to be, because there's no reason why we could not achieve settlement of these disputes by today,'' he said. ``But we haven't and we won't.''
   Shoemaker later played down Knechtel's announcement.
   ``It didn't impress me one way or another,'' he said. ``I just thought it was his call to make.''
   Shoemaker said he was not surprised that there had been no settlement. He predicted last month that the strikes could last into August.
   Knechtel, speaking at a news conference, blamed the UAW for what he described as its unwillingness to compromise over investments GM has declined to make at the Flint Metal Center stamping plant.
   ``We are very disappointed, given the devastating impact that this work stoppage has on our people and on the company - and it's for bad reasons,'' he said. ``It's for reasons involving demands to put investment into a noncompetitive business. And the company is not going to do that.''
   The UAW has alleged that GM reneged on a promise to invest millions of dollars into the plant's engine cradle operations. GM says the union needs to change work rules that allow workers in those operations to quit work early once they reach a certain daily production quota.

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