UAW Vows To Fight Auto Bailout Terms

Washington Post: Labor Leaders Seek To Renegotiate White House Terms On Aid To Automakers

(Washingtonpost.com)  This story was written by David Cho and Zachary A. Goldfarb.

---

The nation's automakers are preparing to ask for wage and benefits concessions from their workers in early January to meet the conditions of a $17.4 billion federal aid package, but labor officials say they will seek to renegotiate the terms of the bailout rather than make those sacrifices.

The remarks by union leaders have set up yet another contentious battle in the auto industry.

In agreeing to provide federal assistance to General Motors and Chrysler, the White House demanded the firms cut worker compensation to the levels paid at the U.S. divisions of Toyota, Nissan and Honda. But Ron Gettelfinger, president of the United Auto Workers, said earlier this week that he would seek to remove the wage-reduction provision of the loan, calling it "an undue tax on the workers" who have already made "major" sacrifices for the benefit of the auto industry.

Gettelfinger said that what is being asked of the autoworkers -- who agreed to concessions in 2003, 2005 and 2007 -- is "unrealistic." He has said he wants to work with President-elect Barack Obama to remove the wage provision.

The White House defended the terms of the auto bailout, saying that every stakeholder in the car companies would have to make sacrifices for the firms to survive.

"These firms have to become viable, and that means they have to look at all of their costs and bring them into line so that they can compete in today's global economy because they have come to the taxpayer asking for assistance, and that's the least the taxpayer can ask for in return," said White House spokesman Tony Fratto.

Greg Martin, a GM spokesman in Washington, said he was optimistic about the coming negotiations with the UAW.

"We'll really start the heavy lifting as soon as the calendar turns over," he said. "We've been working very closely with them to get our costs in a much more competitive line, and we have every confidence that that collaboration is going to continue and that we are going to meet the terms of this loan agreement."

Critics of U.S. automakers say that they pay their workers, who are unionized, far higher wages than those of nonunionized workers at foreign-owned automobile plants. But union leaders say many of their members actually make less. In many cases, the truth depends on how the compensation is calculated -- whether it includes bonus pay and benefits, for instance.

The stakes in the talks between the unions and the automakers are high. If GM and Chrysler are unsuccessful in convincing labor officials, as well as bondholders and other stakeholders, to go along with a broad restructuring plan, the government could call off the loans and let the companies declare bankruptcy or fail. The companies have until March 31 to prove they will remain financially viable.

The deadline and other restrictions "send a clear signal to everyone involved," President Bush said last week. "The time to make the hard decisions to become viable is now -- or the only option will be bankruptcy."

Because the aid is being provided through the executive branch instead of through new legislation, Obama can alter the terms once he takes office.

Transition officials so far have not offered their views on the terms of the bailout, which they described as a "framework."

Those officials did not return messages seeking comment yesterday.

Obama on Friday called the loan package a "necessary step . . . to help avoid a collapse of our auto industry that would have had devastating consequences for our economy and our workers."

The administration on Friday decided to give GM and Chrysler $13.4 billion immediately and $4 billion more in February if the companies meet targets for extracting concessions from unions and bondholders. The federal assistance will come from the Treasury Department's $700 billion Troubled Asset Relief Program and could be exchanged later by the government for as much as a 20 percent stake in the companies. Ford said it did not need government aid at this time.

The federal loans, which will carry an interest rate of 3 percent above a standard interbank lending rate, were necessary to avoid a "disorderly" collapse of an industry that supports hundreds of thousands of jobs, Bush said.

Most of the terms of the loans were based on a failed legislative effort to give Detroit $14 billion in aid.

But the provision that requires the car companies to match wages at their Japanese rivals was inserted by the White House when it took over the effort to prevent a collapse of GM and Chrysler.

Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, said that the condition was an "unfair assault on working men and women."

"I believe that the incoming administration and the Congress should take whatever steps are necessary to remove" the provision, he said in a statement last week.

The White House said lawmakers lost the right to dictate terms of the loan after the Senate failed to pass a bill to help the automakers.

"Congress lost its opportunity to be a partner because they couldn't get their job done," Fratto said. "This is not the way we wanted to deal with this issue. We wanted to deal with it in partnership. What Congress said is . . . 'We can't get it done, so it's up to the White House to get it done.' "

[unlresources]

Gettelfinger is nothing more than a Pimp for the Autoworkers, think about it. A pimp works prostitutes in the same manner as Gettelfinger does the UAW and probably makes more money. The automotive industry is one of the few areas of business that actually believes that they are worth their salary. Gimme a break, "most" of the work there on the line doesn''t qualify as skilled but merely repetitious. Vehicles built nowadays aren''t worth the price that they''re being sold at, what little profit is made on the vehicle is leeched away by the UAW contracts and benefit packages. The automotive industry lost touch with the American public years ago. It''s amazing that it took the industry this long to figure out that with falling sales that they might want to consider idling their plants. What sense did it make to keep the plants at full capacity to further add to the surplus of unsold vehicles? Bankruptcy was a better alternative for the American taxpayers and would''ve saved money in the long run. By giving money to two of the Big Three doesn''t do much but prove that we''re suckers willing fork out money to save their *****.

[mollydtt]

"Hear" to stay?

[lucilioness]

BIG GOVERNMENT HAS BEEN TRYING TO ELIMINATE UNIONS FOREVER. NOT GOING TO HAPPEN...EVER!! WE''RE HEAR TO STAY!

[caldwellptr]

AMERICA!

Pay cuts for the lowest paid?
Tax breaks for millionaires?

Go figure.

[ioweign]

IndyMac bank is collapsing and will cost the governmant $9+ billion.

Let''s blame the unions...

[payasyougo]

"Gettelfinger said that what is being asked of the autoworkers -- who agreed to concessions in 2003, 2005 and 2007 -- is "unrealistic." He has said he wants to work with President-elect Barack Obama to remove the wage provision."
----
We should consider cutting the ranks and wages of teachers, police and firefighters to cover the tax cost of keeping those promised UAW wages. Asking for concessions from such well run companies, and managing the activities by such a well run government makes it so hard not to demand that the taxpayer be the silent majority that must make the sacrifice. Again.

[craigh9]

Surest way to improve the economy and the lives of normal americans can be accomplished in 3 steps:

1 - Eliminate the UAW
2 - Eliminate public employee unions
3 - Eliminate education unions

These 3 easy steps would allow reasonable people to make appropriate adjustments in the ridiculous pay/benefit structures these 3 groups have created and thereby greatly decrease the economic stress on the public through reduced taxation support for govenment employees and elementary and secondary education; would drastically decrease the cost of a college education, as well as make the pricing of an american auto affordable.

[allenbshay]

Here is an economic plan that will not require a bailout. Why don''t the government take the balance of the TARP''s rescue funds and any future stimulus funds, place it into a CD with each bank that has received a portion of the original bailout, with 5-10 percent return on the money. Take the earned interest amount paid each quarter, put directly into a separate payroll account managed by a payroll service provider (i.e. ADP) that will pay the payroll obligations of any company seeking to stabilize its business during this or any recessionary period. This will secure jobs, allow the companies to concentrate on its growth, create an infusion of cash to the banks so that it could free up the credit crunch and begin to lend money, stimulate consumers'' spending and most importantly, the principle amount of the tax payers'' money placed in the CD will not be put at risk. This type of action will create transparency and accountability which can be implemented on January 21, 2009. The problem is that President-Elect Obama and the transitional team does not know it exist. However, you as the reader(s) can be the judge. If you determine that the attached plan can jump start our economy,preserve future investments and protect the tax payers'' money in the process contact your congressperson. Create Job Growth: This type of program can project a minimum employment growth of 100,000 new jobs per month, 30 days after the implementation of this program.COPYRIGHT ) 2008,[e-mail]

[ioweign]

Oh really, so you haven''''t noticed the strikes and strike threats and bullying and posturing by the UAW for years while holding management hostage to their overbloated salaries and perks?

Posted by RowdynTex at 08:59 PM : Dec 25, 2008

From the above article:

Gettelfinger said that what is being asked of the autoworkers -- who agreed to concessions in 2003, 2005 and 2007 -- is "unrealistic."

#####

Unions DO NOT strike for "concessions" ??

Have another beer Rowdy...

[ioweign]

In Japan, where Toyota announced it will lose money for the first time in 70 years, one auto executive said today, "The global crisis is coming at us like a tidal wave."

http://www.cbsnews.com/stories/2008/12/25/eveningnews/main4686597.shtml

[jsd330]

firehose11
My point was it seems like the majority of the people that posted on this article want the uaw and all unions to go away. The only way to do that is chapt 7. Chapt 11 will reorganize and the union will still be there, just like the airlines.
If the bailout is worded equal for managment and labor,then consessions would be fine, but from what I have read it isn''t, there is nothing in it about managment bonus''s and perks.
Just like the bank''s and AIG. Corker, Shelby & Bush want it all on the backs of the workers. And thats what the majority of the people on this post want to.
They hate unions and anybody that makes more then they do, or has more then they do.

[jsd330]

Sorry Strangeworld I am a tradesman, so I wouldn''t be accepted into a country club. If you read the majority of the posts, it seems that the majority of the posters want the big 3 and the uaw totally gone. They all want to drive rice burners, buy third world goods from walmart, and if you assemble somthing for the big 3 you are an unskilled dummy , But if you work for toyota, nissan or honda doing the same job you are skilled. Now how much sense does that make?
Do I really want the big three to go out of business? no, do I want the uaw gone no? should the uaw take concessions? no, because once it starts it will effect wages in every other business and include blue collar and white collar alike. And I don''t belong to the uaw either. I have worked in auto plants as a contractor installing equipment and beleive me those people on the line deserve every cent they get. I was told new some new hires quit within the first hour.

[whosserpico]

I''ve been a union man for over 30 yrs. ( teamster) I''ve worked for two Cos. that have aked for give backs & both our out of business & I was out over $20,000.00, the automakers have known for 15yrs. what they needed to do to compete & they did nothing. The average person can''t afford there cars, they don''t last like the foreign cars , they''ll just keep asking for more $, let them prove themselves first Thanku

[pizzanick]

Merry Christmas everyone - union and non-union. Can we be nice to each other for at least one day?

[ioweign]

Unions bring out the Negativity of otherwise good Americans.

Yes, they save Felons, druggies, slackers from a certain life on the streets, but that is about it.

Thinking, independent minded people with motivation sway clear of Union jobs.

Posted by firehose11 at 01:32 PM : Dec 25, 2008

Gee - Madoff was non-union

Gee - Citibank is non-union

Gee - AIG is non-union

Gee - Toyota is non-union and is reporting losses for the first time since 1941...



Posted by IOWEIGN at 02:27 PM : Dec 25, 2008


LMFAO !!!!

Wow !! You are trying pretty hard there whipper snapper.

Take an extra day to plan out how you can best screw your Company & Boss over. I hope you sent a nice gift to the Messiah er'''' your Union Boss & Mr Getthefinger.

Did you get a new shiney silk Union jacket for Xmas ? Union cap or Union bumper stickers ? or is it "Merry Solstice" for your family ?

Posted by firehose11 at 03:46 PM : Dec 25, 2008

Management has the right to manage OR "mismanage"!

Management is NOT a union function...

[ioweign]

Unions bring out the Negativity of otherwise good Americans.

Yes, they save Felons, druggies, slackers from a certain life on the streets, but that is about it.

Thinking, independent minded people with motivation sway clear of Union jobs.

Posted by firehose11 at 01:32 PM : Dec 25, 2008

Gee - Madoff was non-union

Gee - Citibank is non-union

Gee - AIG is non-union

Gee - Toyota is non-union and is reporting losses for the first time since 1941...

[mollydtt]

The billions should have never been offered to the auto companies in the first place.
The union workers are "working" for failed companies. It''s over. Stick a fork in it.
Bankruptcy will trigger a willingness to come to the bargaining table. Try that.

[hetup-2009]

Please stop your whining, blathering, crying spoiled brat tactics in the comment section of these stories. No One cares about you union losing scum bags. You''re uneducated, been overpaid, had every benefit, and you helped kill the industry that supported your lazy dead *** all this time. Get over it. Now you are going to learn how to work like the rest of us. We have done well with our homes and families and on but a fraction of the money you have been making and pissing away. I would like to slap you all silly.

[clovisbuford]

Unions = Socialism
For bailout: under 30%
Against: Over 60%
Undecided: 10%
This is a telling Poll from a Democratic majority website.
Naty old unions , brought you the 40 hr work week , safe mining conditions , the end of child labour , pensions , health care beneefits ,etc.If you want a return to the guiled age of the carnegies etc, you should do a little research .Its funny conservatives will say you dont govern by polls , ...until they find one they agree with .

[clovisbuford]

Well, frankly it looks like non=Union wagers are just going to get more careful with the money, and they''''re tired of funding the overbloated prices of the Big 3 cars...for a piece of KRAP that''''s gonna conk out the minute they pay it off.Posted by RowdynTex at 01:24 PM : Dec 25, 2008 Yayy its the tinfoil hat section , err toyota just surpassed GM for most cars sold laast yr . none of the foreign car makers are even close . Who ever thunk a jingoistic , flag waving , "america First " patriot like Rowdy would spend all her this tiime denigrating American products and workers. .It''s amazing ,besides the effect of stopping payment on pensions and health care on nearly a million workers who paid their dues , and all the little suppliers ,small buisinesses etc .No economic shock there .. Rowdy for Economic czar , I am sure she can have us all living in a third world country here in no time.