Money Matters - Simplified

UAW local rejects plan to cut wages

Indianapolis -- Efforts to keep a General Motors Co. stamping plant in Indianapolis open hit a dead end after autoworkers refused to consider pay cuts.

United Autoworkers Region 3 Director Maurice Davison said the workers' position likely will mean GM will go ahead with closing plans, posting a schedule possibly as early as Tuesday, the Indianapolis Star reported Monday.

"The sad fact is GM is gone from Indianapolis. That's a fact," Davison said. "It's a sad day for Indianapolis."

UAW members at a union meeting Sunday defied Detroit union chiefs who negotiated wage cuts and expected the 650 Indianapolis autoworkers to vote Monday on a new contract with a potential buyer for the 70-year-old factory, the Star said.

"We pay the International to represent us, not commit fraud and work against us," said Gregory Clark, Local 23 bargaining chairman.

Local 23 officials refused to schedule a vote on the new measure that would lower the base wage to $15.50 an hour from $29 per hour for production workers.

Copyright 2010 United Press International, Inc. (UPI).

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