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Subject: Gettelfinger: Progress in Delphi dispute; Chrysler health care package up next

Author: TonyV

[ Next Thread | Previous Thread | Next Message | Previous Message ] Date Posted: 15:13:21 01/18/06 Wed Gettelfinger: Progress in Delphi dispute; Chrysler health care package up next UAW chief sees no need to give up Jobs Bank David Barkholz Automotive News / January 18, 2006 - 6:00 am -------------------------------------------------------------------------------- CLICK BELOW FOR MORE: >> 2006 Automotive News World Congress -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Advertisement -------------------------------------------------------------------------------- UAW President Ron Gettelfinger said Tuesday that he has seen signs of progress in the union's dispute with Delphi Corp., and the UAW is awaiting the results of a financial review of Chrysler group before deciding on a health care concession package. Speaking to reporters after a dinner speech at the Automotive News World Congress, Gettelfinger said he saw progress in Delphi's recent decision to pull its controversial labor concession package off the table and delay bankruptcy court consideration of major pieces of a $500 million executive compensation package. Gettelfinger said he met with Delphi CEO Steve Miller before the Christmas holidays, but he declined to discuss any specifics of the union's talks with Delphi and General Motors to fashion a new labor agreement for the 25,000 workers at Delphi represented by the UAW. Gettelfinger cautioned that the union intends to hold Delphi to its current contract unless a new agreement can be negotiated, then ratified by the rank-and-file. After Delphi filed for bankruptcy protection on Oct. 8, Delphi asked the UAW to accept wage cuts for hourly workers of nearly 60 percent from $27 an hour to $9, in some cases. That was later increased to about $10.50 an hour, a proposal called insulting by Gettelfinger. GM may offer financial assistance in the form of buyouts or by allowing Delphi workers to return to GM, Delphi's former parent. Gettelfinger said the UAW has again contracted with New York-based Lazard Ltd. to examine Chrysler's books before the union will negotiate a new health care package for Chrysler retirees similar to those granted to GM and Ford Motor Co. Lazard looked at Ford and GM financials before the UAW agreed to health care concessions late last year that saved the two automakers between $800 million and $1 billion each on retiree health care. Gettelfinger said he did not know when the Lazard report would be ready. He said the health care concessions to GM and Ford had been excruciatingly painful to the union, "but it was the right thing to do." During the question-and-answer portion of his dinner speech, though, Gettelfinger said he saw no reason to eliminate the union's Jobs Bank program with the Big Three when the UAW's master contract with the automakers expires in 2007. The program, which pays workers nearly their full wages and benefits if idled by layoff, was established at the behest of the manufacturers, he said. The union gave up other benefits to get the bank, which was to act as an incentive for the automakers to bring work inside the company to keep hourly employees working, he said. The program has not had a material impact on GM's costs, Gettelfinger said. But Thomas Stallkamp, a former top Chrysler executive who is now industrial partner with Ripplewood Holdings LLC, said the Jobs Bank has outlived its usefulness. It was put in place nearly two decades ago to preserve talented people during cyclical downturns in the auto industry, Stallkamp said. But significant changes in the industry means that volumes at the Big Three won't be returning to historic levels. The bank could be a major target for change in the next master contract negotiations, Stallkamp said. "It's a quick thing that could be changed that is no longer logical, if it ever was," he said. Delphi Corp. has proposed eliminating the Jobs Bank at Delphi as part of its UAW negotiations to restructure under Chapter 11. Delphi CEO Steve Miller said the bank costs Delphi about $400 million annually. You may e-mail David Barkholz at dbarkholz@crain.com [ Next Thread | Previous Thread | Next Message | Previous Message ]