UAW Leader: Workers Won't Make Concessions

[one...two...tree 2,762]

By AP / MARK WILLIAMS

(COLUMBUS, Ohio) — Even as Detroit's Big Three teeter on collapse, United Auto Workers President Ron Gettelfinger said Saturday that workers will not make any more concessions and that getting the automakers back on their feet means figuring out a way to turn around the slumping economy.

"The focus has to be on the economy as a whole as opposed to a UAW contract," Gettelfinger told reporters on a conference call, noting the labor costs now make up 8 percent to 10 percent of the cost of a vehicle. (See TIME's pictures of the week)

"We have made dramatic, dramatic changes and the UAW was applauded for that," he said.

Instead, Gettelfinger blamed the problems the auto industry is suffering from on things beyond its control — the housing slump, the credit crunch that has made financing a vehicle tough and the 1.2 million jobs that have been lost in the past year.

"We're here not because of what the auto industry has done," he said. "We're here because of what has happened to the economy."

Gettelfinger also called on Congress to act quickly on a bailout plan for the auto industry, saying action is necessary before President-elect Barack Obama takes office in January.

He said if one automaker were to file for bankruptcy, the others may follow. He said the automakers would find it difficult to restructure under bankruptcy laws and instead could end up out of business. "Would you buy a car from a bankrupt automaker?" he asked.

The Center for Automotive Research, which receives funding from the auto industry, has warned that the collapse of the Big Three could set off a catastrophic chain reaction in the economy, eliminating up to 3 million jobs and more than $150 billion in tax revenue over the next three years.

Gettelfinger called on Congress to act quickly to provide loans to help the automakers until the economy improves and the automakers can move ahead with their plans to become more competitive.

"We cannot afford to allow to see this industry collapse. There is a real concern that could happen."

General Motors Corp., Ford Motor Co. and Chrysler LLC are seeking $25 billion from the government to get them through the economic crisis and the worst sales slump in more than 25 years. GM appears to be in the worst shape, warning that it can't borrow from normal sources.

The nation's largest automaker said it had $16.2 billion in cash at the end of September, raising the possibility that GM will fall below the minimum of $11 billion to $14 billion needed for day-to-day operations by the end of the year.

Democrats in the lame-duck Congress are pressing for a bailout of Detroit's Big Three with money from the $700 billion Wall Street rescue package. But President George W. Bush and many Republicans have come out against the idea, arguing that the financial rescue package was not intended for such uses, and that a bailout would reward poor management and lead other industries to demand government handouts.

http://www.time.com/time/business/article/...1859476,00.html

[Teacher Mark 53]

Nice to see that they're going to make this an easy sell.

[Mr. Big Dog 10,747]

The dude ain't getting it. They need competitive, quality cars that fit into the 21st century. Instead they continue to produce mostly low quality garbage that fares better only when compared to the ####### the Chinese are manufacturing. The US Auto industry and it's products are a disgrace. That's why they're in trouble.

[spookyturtle 9,466]

The dude ain't getting it. They need competitive, quality cars that fit into the 21st century. Instead they continue to produce mostly low quality garbage that fares better only when compared to the ####### the Chinese are manufacturing. The US Auto industry and it's products are a disgrace. That's why they're in trouble.

They weren't in trouble when they sold a few million trucks and suv's a year.

[Donna A 4]

he says that now but gettlefinger is the king of give backs. ask the ones making $14/hr and no benifits. there is not many of us full wage and benifit people left.

[NickD 203]

he says that now but gettlefinger is the king of give backs. ask the ones making $14/hr and no benifits. there is not many of us full wage and benifit people left.

$14.00 an hour would sound real great to my daughter in college looking for a part time job, highest paying job she can find is between 6-7 per hour, least by being in college, she can stay on our family health plan. If she quits school, would have to earn at least $8,400.00 per year just to pay for her health insurance. And that is for a high deductible plan.

Now our state with only 5 million people are claiming that have a budget deficit of $5 billion dollars, and that's a deficit, seems like 5 billion should be the entire budget especially since most jobs only pay around 7 bucks per hour.

Ironic when shopping try to save 10 cents here or 15 cents there, our government is always talking billions or trillions of dollars in debt. It's way out of proportion, everything is.

Did drive through GM dealers yesterday, really no great bargains, like $2,000 off a $28,000 four door sedan that doesn't look like it's worth even $10,000, but will be the instant you drive it off the lot.

Something in our government is really screwed up, have to pay taxes, to the city, the county, the state, then the federal government, dang, I am only one person, and I don't feel like I am getting anything for my money.

Since Bush took office, college tuition in our state increased by $5,000 per year, claim not getting our federal income taxes back, that's an extra $5,000.00, with no way to pay it off as you go, if you can only find a six buck an hour job.

[Donna A 4]

he says that now but gettlefinger is the king of give backs. ask the ones making $14/hr and no benifits. there is not many of us full wage and benifit people left.

$14.00 an hour would sound real great to my daughter in college looking for a part time job, highest paying job she can find is between 6-7 per hour, least by being in college, she can stay on our family health plan. If she quits school, would have to earn at least $8,400.00 per year just to pay for her health insurance. And that is for a high deductible plan.

Now our state with only 5 million people are claiming that have a budget deficit of $5 billion dollars, and that's a deficit, seems like 5 billion should be the entire budget especially since most jobs only pay around 7 bucks per hour.

Ironic when shopping try to save 10 cents here or 15 cents there, our government is always talking billions or trillions of dollars in debt. It's way out of proportion, everything is.

Did drive through GM dealers yesterday, really no great bargains, like $2,000 off a $28,000 four door sedan that doesn't look like it's worth even $10,000, but will be the instant you drive it off the lot.

Something in our government is really screwed up, have to pay taxes, to the city, the county, the state, then the federal government, dang, I am only one person, and I don't feel like I am getting anything for my money.

Since Bush took office, college tuition in our state increased by $5,000 per year, claim not getting our federal income taxes back, that's an extra $5,000.00, with no way to pay it off as you go, if you can only find a six buck an hour job.

tell me about it. my daughter just got an $8.00/hr full time job and quit college for it. now she is off my health care. she got a little taste of an income now thinks she is rich so no need for college anymore. dummy!!!!

strange how the ones making 14 complain they are getting ripped off but when u have no income 14 looks like a million.

[Teacher Mark 53]

my daughter just got an $8.00/hr full time job and quit college for it.

She needs to beat feet back as quick as possible! I took a semester off....that was 14 years ago!

[Donna A 4]

my daughter just got an $8.00/hr full time job and quit college for it.

She needs to beat feet back as quick as possible! I took a semester off....that was 14 years ago!

oh let me tell u...she was so afraid to tell me she emailed it to me. of course her hero of a father supported her decision....i could kill that man i mean boy.

[NickD 203]

my daughter just got an $8.00/hr full time job and quit college for it.

She needs to beat feet back as quick as possible! I took a semester off....that was 14 years ago!

oh let me tell u...she was so afraid to tell me she emailed it to me. of course her hero of a father supported her decision....i could kill that man i mean boy.

Same problem here, daughter's mom and I wanted her to go to college after high school, but she shared a dumpy apartment with a friend and got a minimum wage job. Maybe she needed that year to get it out of her system. That apartment was short lived, her roommate was wild with all night parties. Daughter decided, maybe mom and step dad weren't so bad after all and moved back after about two months. But did sign a co-lease and was obligated to pay that back for the year. While I love her mother, she was a challenge, gather her biological father was a real meanie. But she settled down and is doing well in college now.

With some people, you cannot tell them if they stick their hand in a pot of boiling water, they are going to get hurt, have to let them stick their hand in in, can hope the consequences of that act will not ruin their life. Thank God, she didn't get into any major trouble.

Was maintaining her car, but refused after she left, learned earning seven bucks an hour and have to pay a guy 75 bucks an hour to work on was also way out of proportion.

[Donna A 4]

my daughter just got an $8.00/hr full time job and quit college for it.

She needs to beat feet back as quick as possible! I took a semester off....that was 14 years ago!

oh let me tell u...she was so afraid to tell me she emailed it to me. of course her hero of a father supported her decision....i could kill that man i mean boy.

Same problem here, daughter's mom and I wanted her to go to college after high school, but she shared a dumpy apartment with a friend and got a minimum wage job. Maybe she needed that year to get it out of her system. That apartment was short lived, her roommate was wild with all night parties. Daughter decided, maybe mom and step dad weren't so bad after all and moved back after about two months. But did sign a co-lease and was obligated to pay that back for the year. While I love her mother, she was a challenge, gather her biological father was a real meanie. But she settled down and is doing well in college now.

With some people, you cannot tell them if they stick their hand in a pot of boiling water, they are going to get hurt, have to let them stick their hand in in, can hope the consequences of that act will not ruin their life. Thank God, she didn't get into any major trouble.

Was maintaining her car, but refused after she left, learned earning seven bucks an hour and have to pay a guy 75 bucks an hour to work on was also way out of proportion.

well lets hope my daughter sees the light pretty soon. not only did she drop out but after u got u money back. the time when u either flunk or drop ur classes. about a week later i proudly handed her a bill from the college and said...i will help pay for ur education but i wont pay for ur stupidity. since ur dad supported ur decision to be a failure...he can pay this. i really didnt understand the bill but it was for 700 bucks...something about if u go full time u get a discount but since she withdrew ur not full time anymore so u pay more. she wasted enough of my money im not paying anymore. her dad didnt pay a dime of it so no wonder he didnt care if she dropped out...didnt cost him a thing.

[Mr. Big Dog 10,747]

The dude ain't getting it. They need competitive, quality cars that fit into the 21st century. Instead they continue to produce mostly low quality garbage that fares better only when compared to the ####### the Chinese are manufacturing. The US Auto industry and it's products are a disgrace. That's why they're in trouble.

They weren't in trouble when they sold a few million trucks and suv's a year.

Actually, they were. The US automakers have been losing market share for decades and have done not a single intelligent thing to counter that trend.

[spookyturtle 9,466]

The dude ain't getting it. They need competitive, quality cars that fit into the 21st century. Instead they continue to produce mostly low quality garbage that fares better only when compared to the ####### the Chinese are manufacturing. The US Auto industry and it's products are a disgrace. That's why they're in trouble.

They weren't in trouble when they sold a few million trucks and suv's a year.

Actually, they were. The US automakers have been losing market share for decades and have done not a single intelligent thing to counter that trend.

Some of the market share loss was inevitable over the years. And GM was the largest auto maker in the world until very recently. The industry took the market share that it wanted, high profit vehicles and left the small cars to the Japanese and other imports. Eventually it caught up with them and they made lots of mistakes over the years.

[Pooky 3,792]

The really stupid thing is that of the 3 major US car manufacturers, 2 still have European arms that turn out halfway decent small cars. I know GM is trying to realise this capability, but they're bringing in the Euro models as Saturns (Astra = Opel Astra, Aura = Opel Vectra, Vue = Opel Antara), but they're placing them as premium models. Not to mention the smaller model, the Opel Corsa, which isn't making it over here.

And then there's Ford. Their smallest model in the US is the Focus. In Europe, they sell the smaller Fiesta and the even smaller Ka. When are they likely to make it over here. Not to mention the commonality aspect of it. The Focus is supposed to be a common platform worldwide. Instead, the Europeans get the cool bodyshell and the US market get the ugly sister.

A smart move on the part of the incoming administration would not be to bail out the US carmakers, but to adapt the safety and emissions standards to allow more commonality with Europe, so allowing the US manufacturers to avoid the 18 - 24 months it takes to modify a European car and get it approved in the US (figure was quoted for the Opel/Saturn Astra, which had to retain the Eurozone 1.8 litre engine to minimise the modification process). This would make it easier to get a small car up and running in the US and the commonality would even allow US car exports to Europe again, if the economic circumstances allowed.

Carmakers asking for a bailout just shows that they think the government is stupid. The banks did and were proved right. Billions on small bank buyouts, bonuses and share dividends, but little additional credit and lending. They need to be smart, not greedy. They need to plan for the future, not ask for the quick fix.

And they need to make decent cars.

[Mr. Big Dog 10,747]

The dude ain't getting it. They need competitive, quality cars that fit into the 21st century. Instead they continue to produce mostly low quality garbage that fares better only when compared to the ####### the Chinese are manufacturing. The US Auto industry and it's products are a disgrace. That's why they're in trouble.

They weren't in trouble when they sold a few million trucks and suv's a year.

Actually, they were. The US automakers have been losing market share for decades and have done not a single intelligent thing to counter that trend.

Some of the market share loss was inevitable over the years. And GM was the largest auto maker in the world until very recently. The industry took the market share that it wanted, high profit vehicles and left the small cars to the Japanese and other imports. Eventually it caught up with them and they made lots of mistakes over the years.

That's what I am saying, they made huge strategic mistakes. Hustling from quarter to quarter w/o keeping an eye on the future will inevitably lead to failure. They had it coming and did nothing about it. The best help these companies can get is to oust the incompetent managers that have brought them to this very point. But that, of course, is not what is discussed.