UAW Chief: Waiting For Obama To Address Loan Demands
14 Januar 2009 - 6:56PM
Dow Jones News
The United Auto Workers won't address the cost-cutting demands
included in the auto-industry bailout until President-elect Barack
Obama takes office next week, union President Ron Gettelfinger said
Wednesday.
Gettelfinger's hesitation comes as a Feb. 17 deadline bears down
on General Motors Corp. (GM) and Chrysler LLC. The companies have
until then to craft a plan that gets their labor costs in line with
the U.S. operations of foreign-based competitors under terms of the
low-interest loans from the Bush administration to avoid
bankruptcy. Ford Motor Co. (F) didn't ask for funding but is
expected to push for the same concessions granted to its
rivals.
"We're waiting for the Obama administration," Gettelfinger said
in an interview with a Detroit radio station. "He's sympathetic to
the industry and not anti-union."
While the union and companies have been in talks over changes to
the labor contract, formal negotiations have yet to begin.
Gettelfinger said he is hopeful Obama will address what he
considers unfair demands on workers. He also said that the union is
not necessarily bound by the loan deal struck between the auto
maker and U.S. Treasury. Among the provisions is a clause that says
the companies will lose the funding if the union were to
strike.
Gettelfinger has complained that the union lacks a clear
understanding of what is expected under the loan program. The deal
gives GM and Chrysler until March 31 to finalize changes to the
labor contract and get them approved by UAW members, the companies
are required to present key elements Feb. 17.
GM Chief Operating Officer Fritz Henderson said this week that
he is confident the company and union will reach a deal that meet
conditions of the loans.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com.
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