DAYTON DAILY NEWS                   Copyright (c) 1996, Dayton Newspapers Inc.DATE: Thursday, March 21, 1996               TAG: 9603210077EDITION: CITY           SECTION: NEWS        PAGE: 1A SOURCE: By Laura A. Bischoff DAYTON DAILY NEWS                      GM'S HARD LINE STANCE A HARBINGER                     DAYTON SETS TONE FOR NATIONAL TALKS   In the past, local United Auto Workers unions have struck over outsourcing work and General Motors settled as soon as it started to feel the pinch. So why is GM taking a hard line in the current UAW strike in Dayton and enduring big losses?   Analysts say GM is setting the stage for the national UAW contract talks inSeptember and is feeling pressure from Wall Street to cut its costs.   GM's just-in-time delivery system means a local work stoppage can bring theentire corporation to its knees. The 16-day-old   dispute with UAW Local 696 over outsourcing of work has idled 176,000 GM workers and shut down 26 assembly plants.   But GM is digging in to make sure it has flexibility to use cheaper suppliers to make parts, analysts say.   "This is an important issue and I think General Motors had to draw the line. GM cannot afford to be in such a vulnerable position, especially in the global marketplace," said Robert Premus, an economics professor at Wright State University.   Other local unions in Flint, Mich., and Anderson, Ind., have gone on strikeover the same outsourcing issues but GM moved quickly to settle. David Cole, an auto industry expert at the University of Michigan, said this time GM is inbetter financial shape to tackle the issue.   GM's get-tough approach goes against labor-management trends in the auto industry to cooperate. Cole warned that GM will view Dayton as a labor troublespot.   Harley Shaiken, a University of California-Berkley professor specializing in industrial relations, said: "This isn't about competitiveness. Competitiveness is a code word for low wages."BOX:      -------------------------------------------------------------     DEVELOPMENTS     -------------------------------------------------------------     * What: About 2,700 workers aree on strike against GM's Delphi Chassis      brake plants in Dayton.     * Latest developments: The latest negotiations began at noon Tuesday and      were still going on Wednesday night.     * Delphi Chassis plants in North America: 140     * Delphi Chassis plants affected: 90     * Related stories, Page 8A.     LENGTH: Medium:   62 LINESSUBJ: STRIKE      LABOR ISSUES      LABOR NEGOTIATIONSNA: DELPHI CHASSIS    GENERAL MOTORS CORP.    ENHANCER: REF5