UAW President: "We Won't Shoot Ourselves in The Foot."

TRAVERSE CITY (WWJ) UAW President Bob King is giving his strongest indication to date that the contract they negotiate with the domestic auto companies will probably not include increases in the base wage rate.

"Do our members deserve base rate increases, absolutely," said King, speaking to reporters at the Management Briefing Seminars. "But, I would argue in today's world, its income increases they deserve."

That's likely to include some sort of profit sharing. King wouldn't talk about specifics of negotiations, but said a deal would have to find ways to keep the major automakers creative. A deal that hurt the companies, he said, would result in the union "shooting itself in the foot."

"So, we've gotta be smart and creative, finding ways to increase income without creating a competitive disadvantage."

King, who has been trying to organize foreign owned auto plants, says that effort could help improve everybody's competitiveness. It's a message he has been bringing to the executives at those companies.

"The vast majority of the assemblers here in the U.S. have at least agreed to confidential discussions," he said, without giving the names of companies he was talking with.

It has been reported that the union has made progress in talks with Volkswagen. But, earlier this week at this same conference, Volkswagen officials downplayed those reports.

Talks with the domestic three carmakers began last week. While both sides generally say they don't "negotiate in the media" there are indications they may be off to a good start.

"My general observation is that the done of the dialogue, so far, has been incredibly productive," said Chrysler CEO Sergio Marchionne.

The reason for that, said King, is the groundwork laid before negotiations, dealing with issues before they become problems.

While the tone of King's speech was generally conciliatory, he did criticize those he said were engaging in "anti-uninoism", which he called "counterproductive, short-sighted and wrong."

"If corporate leaders reject the visionary approach of the UAW, then the more adversarial models of unionism will displace our vision," he said. "Labor management cooperation can not be a one way street."

Still, King said the very fact that the union has not started any campaigns against foreign carmakers can be seen as a good sign.

"We really want to achieve success together on the high road."