January 19, 2009 - Ron Gettelfinger UAW, Detroit MI

Gettelfinger: Deadline for GM, Chrysler restructuring plans may be unattainable

Gettelfinger: Deadline for GM, Chrysler restructuring plans may be unattainable

United Auto Workers President Ron Gettelfinger said Monday that a Feb. 17 deadline for General Motors Corp. and Chrysler LLC to complete restructuring plans may be "unattainable."

Last month, the U.S. Treasury Department agreed to loan the two cash-strapped automakers up to $17.4 billion to keep them afloat, contingent on the companies' filing detailed restructuring plans by Feb. 17 that include sacrifices from the UAW and bondholders, among others

"Honestly, most people that have looked at this from a realistic standpoint would say this timeline is almost unattainable," Gettelfinger told reporters in Washington at an event in advance of Tuesday's presidential inauguration. "I said myself that I hope this wasn't set up to intentionally fail. ... People have no idea of the magnitude of what they were asking these companies to do."

GM spokesman Greg Martin declined to comment on Gettelfinger's remarks. "We're working hard to meet the terms," Martin said.

Gettelfinger said that there have been "no formal discussions" yet with the companies but that the union is reviewing documents. He said no real progress has been made on reaching agreements with less than a month before the deadline.

"We've done everything we said we were going to do up to this point," Gettelfinger said. "We've brought our bargaining committees in, we've taken a look through our contracts. We haven't had any real formal discussions -- we have ongoing discussions with the companies -- but nothing formalized in any way shape or form."

He said a clause in the loan agreements with the Treasury that would put the automakers' loans in default if the UAW went on strike didn't bother the union. "It has no impact on anything," Gettelfinger said. "Our contracts are not a part of this agreement."

Gettelfinger said the union would seek more details about some of the loan terms. "We're still trying to sort through these documents because it was very unclear -- and there was no use for us to go to the Bush Administration and try to get an interpretation about what some of this stuff meant."

Rep. Gary Peters, D-Bloomfield Hills, said the auto companies must make tough decisions.

"We ought to let the companies and the UAW and others work those out," Peters said Monday. "The UAW understands what has to be done. The companies understand what has to be done." He said he expected they would have comprehensive plans to make the auto industry strong and a world leader again."

Original Story - Detroit News

Update January 21, 2009

UAW: Talks with GM, Chrysler will create a plan on time

Gettelfinger expects Big 3 to meet with Obama soon

UAW President Ron Gettelfinger said Wednesday he expects discussions about union concessions with General Motors Corp. and Chrysler LLC will result in a plan by the Feb. 17th deadline set by Congress.

"There are things we can do to assist the companies without taking too big of a hit," said Gettelfinger, who added that the UAW has been in touch with the Obama administration.

“We know that additional sacrifices may be required to get these companies back on track. But all stakeholders will have to participate,” Gettelfinger said. “Any attempt to single out one group to bear the brunt of the changes needed within our industry will fail, because no one group can solve the problem alone.”

Gettelfinger said that U.S. President Barack Obama, who was sworn into office on Tuesday, would likely be meeting with the chief executives of the Detroit Three automakers soon.

“He knows and we know that a strong manufacturing base, including a strong domestic auto industry, are vital to the future of the U.S. economy,” Gettelfinger said during a dinner for the Automotive News World Congress, an auto industry conference in downtown Detroit.

“I think you’ll see a meeting in the not so distant future with the big three CEOs and the president.”

The meeting would come as the UAW continues talks with GM and Chrysler, which are seeking concessions from the union in connection with $17.4 billion in federal loans they recently received. The union is also talking to Ford Motor Co., which has not received federal funds but could do so if the economy worsens.

The terms of the loans include provisions to bring the pay, benefits and work rules of workers at GM and Chrysler in line with foreign competitors.

“Right now, UAW bargaining teams are looking for every possible way to help our companies compete and grow in the future,” Gettelfinger said. “We know that additional sacrifices may be required to get these companies back on track but all stake holders will have to participate.”

Ultimately, Gettelfinger said he expects the restructuring of Detroit’s automakers will succeed.

“UAW members are optimistic about working with the new Congress,” he said.

Gettelfinger’s speech came a day after he showed his support for a deal between Chrysler and Fiat S.p.A that would give the Italian automaker an initial 35% stake in Chrysler in exchange for Chrysler having access to Fiat’s small car technologies.

“I think we knew that Chrysler needed to partner with somebody. It was a matter of who and what would do the least harm to people,” Gettelfinger said. “I think that of the options that are out there that this is the best link up.”

Gettlefinger has said that the UAW would seek clarification from the Obama administration about how the loans made to GM and Chrysler would impact the union.

Separately, Gettelfinger said the UAW-Chrysler National Training Center along Jefferson Avenue is up for sale. The center opened in 1985, and was used for education and training for UAW members.

Updated Story - Detroit Free Press