UAW
president Ron Gettelfinger said Tuesday, January 6, that the union
would seek rank-and-file approval for any changes it makes to labor
agreements to help the Detroit Three comply with provisions of the
federal bailout.
The UAWfs bargaining team from the General Motors department was
scheduled to begin discussing their negotiating strategies Tuesday,
Gettelfinger said in an interview with Automotive News. The
unionfs bargaining teams from Ford Motor Co. and Chrysler will begin
meeting 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
receives from the federal government to stave off a cash crisis.
Chrysler and GM have received $4 billion each to date. GM is
slated to get an additional $5.4 billion on January 16. GM would get
another $4 billion on February 17 if Congress authorizes additional
federal loans under the $700 billion banking bailout legislation
passed this fall.
The UAW was singled out for more concessions than any of the
other stakeholders, including bondholders, dealers and suppliers,
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. Whatfs more, it requires new
multibillion-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 signed in late 2007. But whatever
changes are negotiated, the UAW rank and file would vote on the
provisions, he said.
gWefll sit down and have discussions along the lines of things we
could do in the contracts and have that ratified without opening the
contracts,h Gettelfinger
said.
Any changes made to the voluntary
employee beneficiary associations, or VEBAs, also must be
approved by a court. The previous retiree trusts were approved by a
judge after a class hearing.
Gettelfinger said he expected bondholders, dealers and suppliers
also to 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.
Filed by David Barkholz of Automotive
News, a sister publication of
Workforce
Management.