GM seeks UAW help to ease financial burden

[pupp1]

GM seeks UAW help to ease financial burden

The union suspects the automaker wants to discuss slashing health care costs.
DETROIT -- Now that General Motors Corp. has laid bare its dismal financial outlook for the year, the automaker is expected to call on the United Auto Workers union to dig deep to aid the company.

GM Chairman and CEO Rick Wagoner will have the opportunity to plead the automaker's case directly to UAW leaders during an annual meeting between the two groups April 14 in Dearborn.

In a notice distributed Thursday to UAW leaders at GM's U.S. plants, GM and the UAW said the meeting will "provide participants an update of what's going on in the auto industry." No other details were given.

Wagoner is expected to give the UAW a sobering assessment of the state of the company and the auto industry.

Along with Wagoner, UAW President Ron Gettelfinger, Vice President Richard Shoemaker, who heads the union's GM department, plant managers and human resources personnel are scheduled to attend.

At least one local union official said his membership is prepared to do its part to assist the automaker in cutting its onerous health care costs.

"We have a sneaky suspicion health care will be a big part of it," said Jim Kaster, president of UAW Local 1714 in Lordstown, Ohio.

But it may take more than goodwill and voluntary steps to pull GM out of the swoon that triggered the company to warn that it will lose about $850 million in the first quarter, its worst three-month loss since 1992.

GM also said its 2005 profits will come in as much as 80 percent below earlier projections.

GM's sudden profit warning this week continued to reverberate Thursday, with the automaker's shares tumbling a second straight day, by 66 cents, or 2.28 percent, to $28.35. Its shares sank 14 percent Wednesday to $29.01.

Even with GM's fortunes slipping, analysts doubt the automaker has the leverage to coax the union into reopening its current labor contract covering wages and benefits through September 2007. Under the existing pact, workers are scheduled to receive 2 percent raises this September and another 3 percent raise in 2006.
FULL STORY

[mgescuro]

GM has no leverage until it enter bankruptcy protection.
UAW has a sweet deal. Why would they ever walk away from that??

Raises??? Screw that. When a company isn't doing well, workers don't get an increase. WHy should they??

[Perian]

[quote=pupp1]"We have a sneaky suspicion health care will be a big part of it," said Jim Kaster, president of UAW Local 1714 in Lordstown, Ohio. /QUOTE]

Wow. This guy must be a rocket scientist. Nothing gets by him!

[tgagneguam]

...At least one local union official said his membership is prepared to do its part to assist the automaker in cutting its onerous health care costs.

I so don't believe this statement, based on the UAW's historical self-serving behavior. I don't buy for one second that they're interested in the health of the Corporation. If GM goes bankrupt, you can rest assured the UAW will be first in line at the carcass looking for scraps... And then it'll immediately request relief from the government.

My guess is that the UAW will settle for some token concessions like workers paying $25-50 per month for their healthcare, and then they'll trumpet their devotion to the Company, as if Americans should be impressed by their sacrifices. Forgive me, but the UAW seems pretty predictable.

But that's just cynical me...

[Globalist]

This is great opportunity of the UAW to be remebered as a mature and wise partner who understands the importance and urgency of the needed sacrifices.

[gmsickofan]

That's like going to the schoolyard bully and asking him politely not to beat you up.

The union suspects the automaker wants to discuss slashing health care costs

Someone should give them a gold star for figuring that out all by themselves.

[mgescuro]

Originally Posted by Globalist

This is great opportunity of the UAW to be remebered as a mature and wise partner who understands the importance and urgency of the needed sacrifices.

WHen has that ever happened?
I thinki Caterpillar was able to renogiate some terms of their contract, but they aren't nearly as big as GM.

UAW doesn't have a very good public image. Probably worse than the Teamsters. I mean, UAW tried to unionize Grad students!! "Boo hoo... we're poor grad students who work so hard for nothing but a grade... we deserve 3x more pay and full healthcare benefits... just because we are overworked grad students." MEH.... welcome to grad school.

[cemaxc]

Originally Posted by pupp1

Under the existing pact, workers are scheduled to receive 2 percent raises this September and another 3 percent raise in 2006.
FULL STORY

I don't think so!!!!!!! There is no way GM should up hold that agreement!!!!!! NO WAY!!!!!!!

THE UAW MAKES ME SOOOOOOOOO MADDD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

AHHHHHHH!!!!!!!!!!!

[86fleet]

Why can't GM just get rid of the UAW? I don't think it will be hard to find new employees. I mean, GM has such genorus benefits, and the UAW requires such high pay that even if these are cut in half, it would still be a attractive job considering the fact that no higher education is required.

[AndrewGS]

"GM seeks UAW help to ease financial burden"

Isn't this statement a faux pas?

[Globalist]

Originally Posted by AndrewGS

"GM seeks UAW help to ease financial burden"

Isn't this statement a faux pas?

No it's not a faux pas. It's like going to the United Nations first, before going to War.

[AndrewGS]

Originally Posted by Globalist

No it's not a faux pas. It's like going to the United Nations first, before going to War.

Yes, but when the UAW and UN are crooks (Oil for Food) then it's just wasted time.

[nailhead425]

Some day soon, the UAW members will wake up with no job, no benefits, and no one to blame but...everyone who bought a Toyota.

GM should give them two choices: Take it or Leave it.

[Askani]

Originally Posted by 86fleet

Why can't GM just get rid of the UAW? I don't think it will be hard to find new employees. I mean, GM has such genorus benefits, and the UAW requires such high pay that even if these are cut in half, it would still be a attractive job considering the fact that no higher education is required.

While this would be the proper step to put them in their place, it is virtually impossible. There is no way GM can replace thousands of employees at a moments notice. Following such a plan would leave plants workerless for months, while a new workforce is organized and trained. Plus, it's not like you can do it one plant at a time, because if one UAW plant goes, they all go. Furthermore, you have the legal implications of breaking contracts that will definitely be brought up in court. The only way to get around this would be through bankruptcy protection... Which quite frankly doesn't sound like a bad idea right now. It would be going back to the "take all your punishment in one installment so we can go back to making cars plan", which I personally like. All you need is one great year to make people forget about ten mediocre ones.

[Askani]

Originally Posted by mgescuro

WHen has that ever happened?
I thinki Caterpillar was able to renogiate some terms of their contract, but they aren't nearly as big as GM.

UAW doesn't have a very good public image. Probably worse than the Teamsters. I mean, UAW tried to unionize Grad students!! "Boo hoo... we're poor grad students who work so hard for nothing but a grade... we deserve 3x more pay and full healthcare benefits... just because we are overworked grad students." MEH.... welcome to grad school.

I get the feeling this thought process was personally troubling to you for some reason....I agree though, nobody likes a whiner...