UAW May Not Allow Health Concessions

United Auto Workers President Ron Gettelfinger addresses UAW members in Detroit, Tuesday, March 27, 2007. Gettelfinger warned companies not to misinterpret his union's cooperation as a sign of weakness and said the UAW would fight at the bargaining table, in the courts, politically and "if need be on the picket line." His comments came as the UAW kicked off a two-day meeting designed to set the union's bargaining agenda in the upcoming contract talks in the auto industry. (AP Photo/Carlos Osorio) (Carlos Osorio - AP)

Ford said its unfunded total obligation was about $31 billion. Chrysler's obligation is estimated at $19 billion.

Earlier this year, Goodyear workers ratified a contract that created a $1 billion retirees' health care fund controlled by the union, relieving the company of its long-term obligations. Auto industry analysts have said the Detroit automakers are looking at a similar deal.

Gettelfinger made his comments as the UAW's bargaining convention came to a close Wednesday afternoon, after about 1,500 union members adopted a resolution governing generally how bargaining will go with the Detroit Three as well as other companies whose workers are represented by the union.

Bargaining with the Detroit Three officially begins in the summer, and the UAW contract expires in September.

As the convention drew to a close, many union members said they were inspired, yet apprehensive about what lies ahead as the Detroit Three struggle with declining market share and billion-dollar losses. Many longtime workers said they expect the 2007 contract talks to be the toughest in the union's history.

Some said they'd be willing to give up raises to make sure retirees don't face any more increases in health care costs.

"We've got to take care of them," said Russell Phillips, a union steward at Chrysler's assembly plant in Sterling Heights.

At Chrysler, the worries are more pronounced since the company's German parent put it up for sale in February. Phillips said the workers don't even know for sure who they'll be bargaining with as several private equity firms, Canadian parts maker Magna International and even GM discuss making offers.

"Not knowing our future. Not knowing what's affected. It's a scary thing," Phillips said.

Tim Kinney, a unionized Ford salaried employee in Dearborn, thinks the union would fight special wage concessions for his struggling company, which lost $12.7 billion last year. One economist has suggested that Ford go for a temporary 20 percent labor cost cut.

"I know our local bargainer and our national bargainer would definitely be vehemently against that," he said.

Shortly before the convention ended, Howard Taylor, 65, who works at a GM parts warehouse in Jacksonville, Fla., said he's been through many contracts in the past, but never in times as difficult as now.

Taylor, a 42-year GM employee, said he's against more concessions until management shows him it has tightened its belt. He also is confident that UAW negotiators will keep retiree health care intact.

"I think we'll survive this," said Taylor, who is 70 weeks from retirement. "I think we'll come out with a decent contract."

Shares of General Motors stock fell 94 cents, or 2.9 percent, to close at $31.24 in trading on the New York Stock Exchange. DaimlerChrysler's U.S. shares fell $1.68, or 2 percent, to $80.99, while Ford shares rose 13 cents, or 1.7 percent, to $7.98.

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On the Net:

United Auto Workers: http://www.uaw.org