Union could meet resistance at Ford, Chrysler
The United Auto Workers union could meet some resistance as it tries to wrap up contract negotiations at struggling Ford Motor Co. and privately-held Chrysler LLC following Wednesday's landmark deal with General Motors Corp., analysts said.
By Agencies |
DETROIT: The United Auto Workers union could meet some resistance as it tries to wrap up contract negotiations at struggling Ford Motor Co. and privately-held Chrysler LLC following Wednesday's landmark deal with General Motors Corp., analysts said.
While Ford would benefit significantly from the same kind of health-care deal offered to GM, it could balk at the kind of job security concessions offered by its rival.
Officials at Chrysler have already said privately that their new owners are not interested in the massive cash outlay required to shift responsibility for retiree health care benefits to the union.
UAW president Ron Gettelfinger said the union would decide this week which company to approach next.
"We'll probably make that decision in the next couple of days," he said at press conference announcing the strike-ending settlement at General Motors.
Talks between the union and both companies have continued but the intensity has been reduced since the UAW focused on GM, officials from both sides said.
"I would think Ford would fall in line pretty quickly," he said. The tentative GM-UAW deal also includes a lump sum payment instead of cost of living and annual wage increases which allows GM to keep its base wage of 28 dollars per hour stable for the next four years, sources said.
While Ford would likely welcome these terms, a likely stumbling block would be Ford's plans to build a new generation of small cars at a brand new plant in northern Mexico.
Union officials familiar with the bargaining told the media that union negotiators are certain to press Ford to place the plant in the United States.
Robert Nardelli, Chrysler's new chief executive officer, has also said he would like to sell of some of the company's assets such as an in-house trucking company and Chrysler's parts warehouses.
Many union officials said privately they were pleased Gettelfinger had demonstrated his resolve by setting up picket lines at GM.
A strike at either Ford or Chrysler, while possible, is still considered unlikely at this point but so was a walkout at GM up until this week.
While the union made some concessions, it also made some important advances in the tentative agreement at GM, said Harley Shaiken, a labor expert from the University of California-Berkeley.
"There are some important gains for the union at the heart of the agreement," he said. "I think the agreement will secure good jobs that pay middle class wages in the United States."
The creation of the VEBA funded by GM also will give the union a greater voice in the unfolding debate on heath care and eliminates the potential threat of retiree health care benefits being eliminated should the automaker declare bankruptcy, Shaiken noted.
Gettelfinger said the trust is projected to be sufficiently funded to pay out benefits for the next 80 years.
The strike at GM allowed both sides to save face and claim a moral victory said Tom Adams, an instructor in industrial relations at Michigan State University and a former autoworker.
"It allowed the union to say they fought as hard as they could and it gave the rank and file an opportunity to blow off some steam and release some of the anxiety that had built up around these talks," he said.
The strike was an invaluable experience for many young workers, even though it only lasted 40 hours, said Al Benchich, president of UAW Local 909 in Warren, Michigan.
"It was exciting," he said. It's really something when you think about it that individual workers, acting collectively, can actually stop this giant corporation. I think that's very empowering," he said.
While Ford would benefit significantly from the same kind of health-care deal offered to GM, it could balk at the kind of job security concessions offered by its rival.
Officials at Chrysler have already said privately that their new owners are not interested in the massive cash outlay required to shift responsibility for retiree health care benefits to the union.
UAW president Ron Gettelfinger said the union would decide this week which company to approach next.
"We'll probably make that decision in the next couple of days," he said at press conference announcing the strike-ending settlement at General Motors.
Talks between the union and both companies have continued but the intensity has been reduced since the UAW focused on GM, officials from both sides said.
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It appears Ford could accept most of the agreement the union negotiated GM, said Erich Merkle, an analyst with IRN. "I would think Ford would fall in line pretty quickly," he said. The tentative GM-UAW deal also includes a lump sum payment instead of cost of living and annual wage increases which allows GM to keep its base wage of 28 dollars per hour stable for the next four years, sources said.
While Ford would likely welcome these terms, a likely stumbling block would be Ford's plans to build a new generation of small cars at a brand new plant in northern Mexico.
Union officials familiar with the bargaining told the media that union negotiators are certain to press Ford to place the plant in the United States.
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Chrysler officials also have already signaled they don't consider the union-run retiree voluntary employee beneficiary association (VEBA), a critical issue. Robert Nardelli, Chrysler's new chief executive officer, has also said he would like to sell of some of the company's assets such as an in-house trucking company and Chrysler's parts warehouses.
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"Chrysler is a little bit different situation," Merkle said. "A VEBA isn't something Chrysler might be interested in," he said. "It's hard wired into the private equity guys to close plants and eliminate jobs." Many union officials said privately they were pleased Gettelfinger had demonstrated his resolve by setting up picket lines at GM.
A strike at either Ford or Chrysler, while possible, is still considered unlikely at this point but so was a walkout at GM up until this week.
While the union made some concessions, it also made some important advances in the tentative agreement at GM, said Harley Shaiken, a labor expert from the University of California-Berkeley.
"There are some important gains for the union at the heart of the agreement," he said. "I think the agreement will secure good jobs that pay middle class wages in the United States."
The creation of the VEBA funded by GM also will give the union a greater voice in the unfolding debate on heath care and eliminates the potential threat of retiree health care benefits being eliminated should the automaker declare bankruptcy, Shaiken noted.
Gettelfinger said the trust is projected to be sufficiently funded to pay out benefits for the next 80 years.
The strike at GM allowed both sides to save face and claim a moral victory said Tom Adams, an instructor in industrial relations at Michigan State University and a former autoworker.
"It allowed the union to say they fought as hard as they could and it gave the rank and file an opportunity to blow off some steam and release some of the anxiety that had built up around these talks," he said.
The strike was an invaluable experience for many young workers, even though it only lasted 40 hours, said Al Benchich, president of UAW Local 909 in Warren, Michigan.
"It was exciting," he said. It's really something when you think about it that individual workers, acting collectively, can actually stop this giant corporation. I think that's very empowering," he said.
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