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General Motors Corp risks the spreading of a strike initiated by a United Auto Workers (UAW) local unit. The workers of a GM plant that builds crossover vehicles went on strike on Thursday. Their strike, corroborated with a union walkout at American Axle & Manufacturing Holdings Inc could get pretty serious pretty fast for the world's second largest automaker (after Toyota).
The American corporation already had to halt or partly idle the production process at nearly 30 North American plants because of parts shortages caused by a strike at the American Axle that lasted seven weeks.
Members of the local UAW refused to continue doing their job at GM's Lansing Delta Township plant near Lansing, Michigan. They announced that they are on strike at about 10 a.m. ET. The reason they went on strike was that the union and the car manufacturer failed to agree on work rules and some other issues.
The two parts were trying to reach an agreement for months but were unable to agree on the details of the contract and sign it.
"We are disappointed that UAW Local 602 has taken strike action at the Lansing Delta Township plant. We remain focused on reaching an agreement as soon as possible," GM spokesman Dan Flores said.
The Delta Township plant run by approximately 3,300 hourly workers produces Buick Enclave, Saturn Outlook and GMC Acadia crossover vehicles. The three models posted a 45% year-over-year surge in March U.S. sales to more than 14,000 vehicles.
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