General Motors announced today that it started the wind-down of its Indianapolis stamping plant after UAW-represented workers rejected a proposed 50 percent pay cut.
“We are disappointed that UAW Local 23 was not able to ratify the proposed labor agreement,” said Carpenter GM spokeswoman Kim Carpenter.
Carpenter also added that he has ended its search for a potential buyer. The production will stop in mid-2011, and the plant will close its doors by December 2011.
Apparently, UAW-represented workers rejected the cuts because they were too deep and the plant's 650 workers would take their chances transferring to another GM plant should jobs open. The contract proposed by GM involved a payment cut from $28 an hour to $14 an hour.
This means less than $30,000 per year. Furthermore, the proposed contract also contained a ”buydown” provision, which means that the manufacturer would have paid workers a total of $25,000 over two years in order to compensate them for the wage cuts.
For those who don’t know, the GM Indianapolis stamping plant makes , such as hoods, doors and fenders, for several GM cars. [via autonews - sub. required]