GM, UAW Sign Pact Rewarding Better Quality

General Motors Corp. and the United Auto Workers union have signed a landmark contract that will reward workers with pay and benefits for improved quality, it was reported Sunday.

GM officials said the pact is “key to our survival” and a way to stop slumping sales.

The Detroit Free Press, which obtained a copy of the pact, said the contract establishes a “Quality Network” in efforts to improve the way cars and trucks are made to reduce the expense of mistakes in production and design.

Union leaders said the pact is unique and could mean far more union say over which jobs are subcontracted. But they also expressed uncertainty about how the program will be received by union members.

More Worker Participation

The program--which suggests UAW members would work with management at the major car and truck divisions on design, engineering and quality control--could set the stage for more discussions on worker participation in company decisions during approaching contract talks, union and company officials said.

A summary of the agreement was distributed to union leaders Friday as GM announced it was recalling 1.1 million 1983-84 compact J-cars for defective seat backs and another 108,000 1985-86 Chevrolet Spectrum cars for faulty fuel pumps.

A joint letter, which soon will be mailed to rank-and-file workers, urges company employees “to work together to jointly improve quality at all U.S. locations.”

“We need to increase our rate of improvement and we are convinced a joint effort is the best way to achieve that.”

“By providing high-quality, high-value products, we can improve our sales and thus the job security of all our employees . . .,” the letter said.

The size of the rewards for improved quality was not known.