UAW blinks first: Reconsidering health concessions for Chrysler
Chrysler no doubt felt a little burned by the United Auto Workers Union after being told it would receive no concessions for health care like the ones offered to both General Motors and Ford. At the time, the UAW cited the Chrysler Group's better financial health as the reason for the snubbing, but apparently the automaker's $1.5 billion loss last quarter and its expected loss of $1.2 billion for the year is enough to convince UAW president Ron Gettelfinger (shown at right with then Chrysler Group CEO Dieter Zetsche in 2003) that Chrysler's not doing as well as he first thought. Therefore, the UAW is conducting an independent financial study of DaimlerChrysler, just like it did for GM and Ford, to assess the company's actual fiscal standing before a decision to offer concessions is made. Since DCX is an German-American hybrid, however, they're finding it more difficult to gain access to the financial info they need. DCX, however, should be as forthcoming with that data as possible if it hopes to convince the UAW that health concessions would be in both their interests. [Source: The Detroit News]
Reader Comments (Page 1 of 1)
whofan 4:51PM (12/18/2006)
I would hope the UAW gives its employers a level playing field with health care.
We desparately need a national health care system where everyone pays not just the working.
Why would anyone think DC would be any better off than GM or Ford?
UAW needs to organize Toyota And Honda!
Then offer health care to its members and let the automakers off the hook.
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JON C 5:21PM (12/18/2006)
Perhaps the union isn't giving DC the concessions its giving GM and Ford is because DC's Mercedes employees in Germany have benefits that exceed those of a typical US autoworkworker.The union smells deep pockets and would love to import those benefits to the workforce thereby setting a new benefits precedent and gaining political power and influence.Downside?As usual, when benefits go up profitability and competitiveness go down.Then the push to outsource becomes greater.Vicious circle,isn't it?
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Edsel 5:28PM (12/18/2006)
#1 Perhaps the Feds & UAW can figure out a way to nationalize GM, Ford, and Chrysler thereby offering even better benefits to its workers. The Brit's did this in the 1960's and look how successful their suto industry is today!
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dave 6:52PM (12/18/2006)
unionize toyota and honda? you have to be joking. my son worked for honda in ohio when there was a small movement to organize. it was stopped cold in it's tracks. that was the last day of his honda career. he went to gm, has been there for over fifteen years and though his health package is no longer what it used to be, it's still far better than what honda gave him. national health care? whith this administration? I'd rather do my own brain surgery.
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Barney 11:03PM (12/18/2006)
Accountants can give any figure asked for. The Chrysler group has so many subsiduaries that they can play the old shell game forever. A wealthy union like the UAW can do the same. Their income could subsidize a health care system on their own. It's now a race to see who's profit will be benefical to the auto workers. Perhaps neither.
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P to the C 8:51AM (12/19/2006)
Yes, we do need a national health system, not just for
humanitarian reasons but also to give our manufacturers a level playing field. With time the U.S. will catch up to the rest of the world in this
regard but I'm afraid we haven't come that far as a nation just yet. Until then this kind of bargaining wil go on and on and on.
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