By TOM KRISHER
The Associated Press
Wednesday, March 28, 2007; 4:47 PM
DETROIT -- The head of the United Auto Workers said Wednesday that the union already has made health care concessions to General Motors Corp. and Ford Motor Co., and he implied that it won't give any more.
At the close of the union's two-day bargaining convention in downtown Detroit, President Ron Gettelfinger said the UAW made major concessions in 2005 that saved Ford and GM billions in long-term retiree health care obligations.
"We addressed health care in '05. You don't get two bites of the apple, do you?" he said.
"We've stepped up to the plate," Gettelfinger said when asked if the union would consider further concessions or taking on the health care obligations in a deal similar to one reached between the Goodyear Tire & Rubber Co. and the United Steelworkers.
When asked if the union wouldn't do any more, he replied: "I'm saying I'm not going to negotiate in the media, but they know what we did."
DaimlerChrysler AG's Chrysler Group didn't get the same concessions in 2005 because the UAW said the company was in better financial shape at the time. But Chrysler has since started losing money, and the UAW re-examined the company's books to determine if it would grant the same deal.
Gettelfinger said Tuesday that review is complete, but he wouldn't talk about the results.
"I wouldn't rule it in and I wouldn't rule it out at this time," he said. "We've been very open-minded to looking at it. It's just at this point in time not been resolved."
Under the 2005 agreement with GM, hourly workers contribute $1 per hour in future pay increases to a new fund to help pay for retirees' health coverage. Single retirees pay up to $370 a year in deductibles and fees for their coverage. And most retirees and all active hourly workers pay higher co-payments for prescription drugs.
In the deal with Ford, retired autoworkers will start paying monthly contributions, annual deductibles and co-payments for some medical services up to a maximum of $370 a year for individuals and $752 for a family.
Chrysler officials have said not having the same deal puts them at a competitive disadvantage to their Detroit counterparts.
GM, in its annual report filed with the U.S. Securities and Exchange Commission, said it will seek relief from its staggering $68 billion post-retirement hourly employee health care obligation in contract talks with the UAW.
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