United Auto Workers President Ron Gettelfinger said there may be more short-term cuts ahead for its Chrysler retirees as the union waits to get and then quickly sell its 55% in the new company created from the merger of Chrysler LLC and Italy's Fiat SpA (FIATY).

"Right away its going to be tight and there may be more cuts, but in the long run, we think the retirees will come out OK," Gettelfinger said in his first public appearance since Chrysler filed for bankruptcy protection four days ago. He said there is about $1.5 billion in the health-care trust, which the union won't access until next year, and the first payment into the trust, which is also slated for next year, will only be about $300 million.

All of Chrysler's UAW members are on temporary layoff after the auto maker idled its plants Monday. The plants are slated to remain closed for as much as 60 days while Chrysler reorganizes itself and merges with Italian auto maker Fiat. UAW members agreed to deeper cost-concessions in order to keep Chrysler out of bankruptcy. However, the auto maker failed to win a reduction in its debt from creditors.

Gettelfinger said the cost-concessions reached with Chrysler will be used as a template when dealing with General Motors Corp. (GM). Some of those concessions include the suspension of cost-of-living allowances, elimination of Christmas bonuses and a cut in holiday pay. Chrysler retirees also lost vision and dental coverage. GM must still win cost reductions from the UAW as it tries to secure more federal aid and avert a June 1 bankruptcy, and Gettelfinger said work continues on concessions at GM.

He said the UAW will work fast to sell its equity in the new Chrysler once the auto maker emerges from the bankruptcy process. All proceeds from the equity sales will go to funding the health-care trust also known as the Voluntary Employees Beneficiary Association, or VEBA.

Gettelfinger also confirmed the UAW will have a board seat in the new company but it won't have any voting rights. "We wish we could have done better but of the options that were out there, this (Fiat merger) was head and shoulders above the rest," he said.

"We thought we could keep this thing from going into bankruptcy," Gettelfinger said, adding that he already had met with Fiat CEO Sergio Marchionne several times.

 
   -By Jeff Bennett, Dow Jones Newswires; 248-204-5542;     jeff.bennett@dowjones.com; 248-204-5542