UAW delegates: We'll sacrifice to help U.S. auto industry

12.3.2008, UAW

UAW delegates: We'll sacrifice to help U.S. auto industry

At a joint meeting of UAW Ford, GM and Chrysler National Councils today in Detroit, UAW delegates from auto assembly, stamping, engine, transmission and parts depots across the United States agreed to take major steps to help the industry move forward.

As UAW President Ron Gettelfinger prepared to testify in Washington Dec. 4 and 5 in support of urgent bridge loans for the auto industry, UAW Council delegates overwhelmingly approved a series of recommendations from the union’s International Executive Board.

The joint council meeting included a comprehensive review and discussion of the emergency facing America’s domestic auto industry, which will likely result in liquidation of one or more companies without federal assistance.

The new measures include delaying company payments to the Voluntary Employee Beneficiary Association (VEBA), the independent trust that is scheduled to take over payments for retiree health benefits in 2010, and suspension of the controversial “jobs bank” program. Additionally the council agreed to consider making further modifications to the 2007 national agreements.

At a press conference following the session, Gettelfinger outlined key sacrifices UAW members are willing to consider to help ensure the viability of the domestic automakers during the global economic crisis.

With council delegates looking on, the UAW president spoke to a large gathering of local, national and international news media who came to learn about the UAW’s response to the auto crisis.

Gettelfinger stressed that while the union will allow delayed payment schedule for the VEBA, the union would protect UAW retirees’ health care. ”We are simply going to defer those payments until a later date at a guaranteed interest,” he said.

The union’s job security program, often referred to as the “jobs bank” has helped workers adjust to rapid downsizing in the auto industry, but as Gettelfinger acknowledged, it has become a lightning rod.

He said the union’s auto department vice presidents will begin working with the companies today on the mechanics of dismantling the program. “We are well aware of the number of workers who are impacted,” Gettelfinger said. “However, we think that it’s a responsible thing for us to do.”

Finally, said Gettelfinger, the union will convene UAW Chrysler, Ford and General Motors bargaining committees to meet with their company counterparts. “We will immediately engage with our elected bargaining committees to work with our vice presidents and their staff,” he said. "We will review the agreements and we are going to consider modifications.” UAW members, Gettelfinger emphasized, will have final say in any changes to union-negotiated agreements. “Any modifications that we make in those agreements we will take back to our membership for ratification.”

Gettelfinger and the company CEOs testify at congressional hearings Thursday and Friday. The executives will offer detailed plans on how they will use a proposed $34 billion in emergency bridge loans to protect the companies from insolvency.

“We’re looking forward to going,” said Gettelfinger. “It will give us a chance to answer questions. I know that members of Congress appreciate us coming in and trying to help them better understand the concessions we’ve made.”

Gettelfinger stressed that the tough times facing domestic automakers are not unique, but are affecting auto companies around the world. Virtually every other auto producing country – including Germany, Japan, United Kingdom, South Korea, Brazil, Russia and China – has provided or is considering billions of dollars in aid to its auto industry.

Sparking huge applause from UAW delegates, Gettelfinger said the domestic auto companies are critical to the health of the U.S. economy. “The real issue is the backbone of America -- an industry that does more for the economy than any other industry and, quite frankly, made the middle class what it is today.”