Contract Talks begin between GM and UAW

The four-year contract between the UAW and US automakers will end at midnight on September 14. Concerns have been raised over automakers increasing their investments in Mexico to take advantage of lower labor markets and Mexico's free trade deals with many other countries.

UAW President Dennis Williams refused to comment on the Ford's move, but said that it becomes a reason to worry for him whenever any corporation starts investing outside the US.

UAW and General Motors officials were happy on Monday after contract talks kicked off. They vowed to work together even if differences crop up between them. The union wants rise in wages of workers, given increase in sales and profits among US automakers. But the manufacturers are not in the mood of increasing wages so as to remain competitive with Asian and German rivals.

"These negotiations will not be easy. But they are no more difficult than those we've had in the past. We have a membership that has, because of the economy, had stagnant wages, and we plan to address that. We all plan to bridge that gap", said Williams.

GM CEO Mary Barra said that she has high hopes that the parties will manage to reach an agreement that will be beneficial for both the company and its employees. Barra added that the company needs to do well for long-term job security.