United Auto Workers chief happy White House, Treasury may step in
December, 12, 2008 - 04:41 pm Johnson, Tom Krisher And Kimberly S. - (THE ASSOCIATED PRESS)
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DETROIT - A slightly relieved United Auto Workers President Ron Gettelfinger said he's happy that the White House appears poised to step in and rescue the beleaguered auto industry, although he accused GOP senators who blocked emergency loans of trying to "pierce the heart" of organized labour.
"It was simply subterfuge," he said at a news conference Friday in Detroit. "There were Republicans that wanted to tear down any agreement we came up with."
General Motors Corp. and Chrysler LLC are seeking US$14 billion in federal loans to make it through March. Both companies say they are running critically low on cash. Bankruptcy is possible without federal help.
A deal to provide the loans collapsed in the Senate Thursday night after negotiations between lawmakers and the UAW over wage cuts fell apart.
The White House said Friday it will consider using the $700-billion Wall Street bailout fund to prevent the U.S. auto industry from collapsing, and the Treasury Department said it "will stand ready to prevent an imminent failure until Congress reconvenes."
"I'm not even sure what this means, how much they're talking about, any terms or conditions that are associated with it," Gettelfinger said.
He said he doesn't think the union will be forced to negotiate wage cuts or other terms with the White House for the industry to get federal aid.
Gettelfinger said it's important for the White House to release money as quickly as possible to avoid a "run on the banks" at the automakers as parts suppliers and creditors start demanding cash on delivery. The Bush administration agreed to a loan bill that was passed by the House, which includes the appointment of a "car czar" who would have the power to push for concessions from the union, creditors, dealers and other parties.
"It's just easy to take the union and blame us for everything," he said. "Other stakeholders were not being held to the same standards. We were on third base and the other stakeholders were not in the ballpark."
Gettelfinger accused Republican senators from the South who blocked passage of the auto loan bill of doing the bidding of foreign automakers who have located factories in their states.
"They thought perhaps they could have a twofer here maybe: Pierce the heart of organized labour while representing the foreign brands," Gettelfinger said.
The Senate negotiations that fell apart late Thursday centerd on possible wage and benefit concessions from the UAW as well as large-scale debt restructuring by GM, Chrysler and Ford Motor Co. The talks collapsed when the UAW refused to agree to bring workers' pay into line with Japanese carmakers before the union's current contract with the automakers expires in 2011.
Senator Bob Corker (R-Tenn.), who served as the point man in the Senate talks, said the legislation he was crafting would have allowed "these companies to go ahead with strength that they have not had in my lifetime."
Gettelfinger said the UAW wondered if it was being "set up" Thursday when Corker asked to meet with union leaders to work out a plan that would pass muster with Senate Republicans.
"It was risky," he said. "Corker put down what he wanted to see happen. We knew that negotiating with an individual senator was a difficult challenge for us."
Senator Richard Shelby (R-Ala.) said on the Senate floor late Thursday that the South had a "growing automobile industry" and there was no reason for the Detroit companies to be uncompetitive.
"Bailouts generally don't work, and this is a huge proposed bailout, and I fear it's just the down payment on more to come next year," Shelby said.
"These companies are either already failed or failing and that's a shame. These aren't the General Motors, Ford and Chrysler I knew," he said.
Gettelfinger said some Senate Republicans may have "resented" the leadership the UAW showed during congressional hearings and meetings where it offered concessions such as the delay of company payments to an outside health care plan, and the shutdown of the controversial "jobs bank" program where some laid off workers get paid a majority of their salary after unemployment benefits run dry.
Gettelfinger joined a chorus of union officials in expressing anger and frustration against senators who thwarted the bill, with several joining him in allegations of collusion with Japanese automakers to break the UAW.
"What this is the southern conservative senators trying to destroy the United Auto Workers, trying to destroy unions," said Mike O'Rourke, president of a UAW local at a GM factory in Spring Hill, Tenn., the home state of Corker, one of the most vocal opponents. "It's a sad day in America when the senators turn their back on Main Street."
Jim Graham, leader of a UAW local at another GM plant in Lordstown, Ohio, near Cleveland, accused the senators of acting on behalf of the Japanese auto industry in an effort to break the UAW so it can drive down wages. Foreign-owned automakers have located numerous factories in southern states, where unions have less clout.
Most southern U.S. auto plants run by Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., BMW AG, Daimler AG and other manufacturers are non-union.
Hourly wages for UAW workers at GM factories are about equal to those paid by Toyota Motor Corp. at its older U.S. factories, according to the companies. GM says the average UAW labourer makes $29.78 per hour, while Toyota says it pays about $30 per hour. But the unionized factories have far higher benefit costs.
Detroit's carmakers employ nearly a quarter-million workers, and more than 730,000 others produce materials and parts for cars. If one of the automakers declared bankruptcy, some estimate as many as three million U.S. jobs could be lost next year.
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Associated Press Writer Ken Thomas in Washington contributed to this report.
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Im starting to think this is a pension grab attempt.
December, 12, 2008 - 04:41 pm Johnson, Tom Krisher And Kimberly S. - (THE ASSOCIATED PRESS)
Bookmark
DETROIT - A slightly relieved United Auto Workers President Ron Gettelfinger said he's happy that the White House appears poised to step in and rescue the beleaguered auto industry, although he accused GOP senators who blocked emergency loans of trying to "pierce the heart" of organized labour.
"It was simply subterfuge," he said at a news conference Friday in Detroit. "There were Republicans that wanted to tear down any agreement we came up with."
General Motors Corp. and Chrysler LLC are seeking US$14 billion in federal loans to make it through March. Both companies say they are running critically low on cash. Bankruptcy is possible without federal help.
A deal to provide the loans collapsed in the Senate Thursday night after negotiations between lawmakers and the UAW over wage cuts fell apart.
The White House said Friday it will consider using the $700-billion Wall Street bailout fund to prevent the U.S. auto industry from collapsing, and the Treasury Department said it "will stand ready to prevent an imminent failure until Congress reconvenes."
"I'm not even sure what this means, how much they're talking about, any terms or conditions that are associated with it," Gettelfinger said.
He said he doesn't think the union will be forced to negotiate wage cuts or other terms with the White House for the industry to get federal aid.
Gettelfinger said it's important for the White House to release money as quickly as possible to avoid a "run on the banks" at the automakers as parts suppliers and creditors start demanding cash on delivery. The Bush administration agreed to a loan bill that was passed by the House, which includes the appointment of a "car czar" who would have the power to push for concessions from the union, creditors, dealers and other parties.
"It's just easy to take the union and blame us for everything," he said. "Other stakeholders were not being held to the same standards. We were on third base and the other stakeholders were not in the ballpark."
Gettelfinger accused Republican senators from the South who blocked passage of the auto loan bill of doing the bidding of foreign automakers who have located factories in their states.
"They thought perhaps they could have a twofer here maybe: Pierce the heart of organized labour while representing the foreign brands," Gettelfinger said.
The Senate negotiations that fell apart late Thursday centerd on possible wage and benefit concessions from the UAW as well as large-scale debt restructuring by GM, Chrysler and Ford Motor Co. The talks collapsed when the UAW refused to agree to bring workers' pay into line with Japanese carmakers before the union's current contract with the automakers expires in 2011.
Senator Bob Corker (R-Tenn.), who served as the point man in the Senate talks, said the legislation he was crafting would have allowed "these companies to go ahead with strength that they have not had in my lifetime."
Gettelfinger said the UAW wondered if it was being "set up" Thursday when Corker asked to meet with union leaders to work out a plan that would pass muster with Senate Republicans.
"It was risky," he said. "Corker put down what he wanted to see happen. We knew that negotiating with an individual senator was a difficult challenge for us."
Senator Richard Shelby (R-Ala.) said on the Senate floor late Thursday that the South had a "growing automobile industry" and there was no reason for the Detroit companies to be uncompetitive.
"Bailouts generally don't work, and this is a huge proposed bailout, and I fear it's just the down payment on more to come next year," Shelby said.
"These companies are either already failed or failing and that's a shame. These aren't the General Motors, Ford and Chrysler I knew," he said.
Gettelfinger said some Senate Republicans may have "resented" the leadership the UAW showed during congressional hearings and meetings where it offered concessions such as the delay of company payments to an outside health care plan, and the shutdown of the controversial "jobs bank" program where some laid off workers get paid a majority of their salary after unemployment benefits run dry.
Gettelfinger joined a chorus of union officials in expressing anger and frustration against senators who thwarted the bill, with several joining him in allegations of collusion with Japanese automakers to break the UAW.
"What this is the southern conservative senators trying to destroy the United Auto Workers, trying to destroy unions," said Mike O'Rourke, president of a UAW local at a GM factory in Spring Hill, Tenn., the home state of Corker, one of the most vocal opponents. "It's a sad day in America when the senators turn their back on Main Street."
Jim Graham, leader of a UAW local at another GM plant in Lordstown, Ohio, near Cleveland, accused the senators of acting on behalf of the Japanese auto industry in an effort to break the UAW so it can drive down wages. Foreign-owned automakers have located numerous factories in southern states, where unions have less clout.
Most southern U.S. auto plants run by Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., BMW AG, Daimler AG and other manufacturers are non-union.
Hourly wages for UAW workers at GM factories are about equal to those paid by Toyota Motor Corp. at its older U.S. factories, according to the companies. GM says the average UAW labourer makes $29.78 per hour, while Toyota says it pays about $30 per hour. But the unionized factories have far higher benefit costs.
Detroit's carmakers employ nearly a quarter-million workers, and more than 730,000 others produce materials and parts for cars. If one of the automakers declared bankruptcy, some estimate as many as three million U.S. jobs could be lost next year.
-
Associated Press Writer Ken Thomas in Washington contributed to this report.
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Im starting to think this is a pension grab attempt.
