GM and UAW begin negotiations tonite
GM and UAW begin negotiations tonite
Automotive News | January 6, 2009 – 4:31 pm EST
| UAW President Ron Gettelfinger |
UAW President Ron Gettelfinger said today that the union would seek rank-and-file approval for any changes it makes to labor agreements to help the Detroit 3 comply with provisions of the new federal bailout.
UAW negotiations for those changes begin tonight with General Motors, Gettelfinger said in an interview with Automotive News at Solidarity House. Union negotiators will meet with Ford Motor Co. and Chrysler LLC later this week, he said.
President George Bush is requiring GM and Chrysler to make cuts to improve their competitiveness as part of emergency loans each is receiving from the federal government to stave off a cash crisis.
Chrysler and GM have received $4 billion each to date. GM, which is slated to get $13.4 billion total, will receive another $5.4 billion on Jan. 16. It would get the final $4 billion on Feb. 17 if Congress authorizes the additional funds.
The UAW was singled out for more concessions than any of the other stakeholders, including bondholders, dealers, suppliers or others, Gettelfinger said. The union is willing to help, he said. But the process is being slowed by confusing loan language and the absence of a federal point person or car czar to clarify questions, he said.
The so-called term sheet of the loan calls on the UAW to agree to competitive compensation with the Japanese transplants and more flexible work rules. What’s more, it requires new multi-billion dollar trusts created by the UAW for retiree health care to be half paid with automaker stock instead of cash.
With GM and Chrysler needing those concessions by February, Gettelfinger said UAW staff resources have been stretched thin.
He declined to say what changes the UAW would make to the cost-saving national agreements just signed in late 2007. But whatever changes are negotiated, the rank-and-file of the UAW would vote on the provisions, he said.
“We’ll sit down and have discussions along the lines of things we could do in the contracts and have that ratified without opening the contracts,” Gettelfinger said.
Any changes made to the Voluntary Employee Beneficiary Associations also would have to be approved by a court. The previous retiree trusts were approved by a judge after being subjected to a class hearing.
Gettelfinger said he expected bondholders, dealers and suppliers to also make sacrifices. But he said he would not let those negotiations stop the UAW from making changes that would help the automakers get their loans.
