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UAW President Says Unions are Not Part of the Automotive Industry's Problems
02:03 p.m. EDT, November 17, 2008

During a news conference on Saturday, November 15, United Auto Workers president Ron Gettelfinger said the crisis in the automotive industry could not be laid at the feet of the work force.

"We need to get this bridge loan and we need it in this lame duck [Congressional] session," said Gettelfinger, calling General Motors, Ford, and Chrysler critical to the national economy, but maintaining that blaming UAW workers and retirees for the crisis was unfair.

Referring to changes in contracts with the automakers, Gettelfiner cited "dramatic, dramatic changes" including a health-care trust fund or voluntary employee beneficiary association, that is at the heart of a the UAW's cost-cutting contract with automakers.

Set to take effect in 2010, the trust fund will slash the automakers share of health care costs for more than 700,000 workers and retirees represented by the UAW. The really problematic issues facing automakers, said Gettelfinger, stem from the slow economy, the tight credit market, and a dramatic downturn in consumer confidence.

"We're on the cliff here," said Gettelfinger, discussing the massive job losses that would result from an automaker filing for bankruptcy. "During this year General Motors at one time employed more workers than all of the foreign nameplates operating in this country. The big three spends more money on research and development than NASA."

GM, which has already said it will run out of operating cash early in the coming year, has, along with representatives from Ford and Chrysler, sought a federal bailout for the industry. Although Democrats in Congress are receptive, they may lack the votes to get such a measure passed since the Bush White House is cool to the proposal.


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