As Hearings Resume, UAW Offers Concessions

Urging an Auto Bailout, Union Retreats on Terms Of Health Care, Jobs Bank

With new union concessions on the table and plans they say will restore the U.S. auto industry to viability, chief executives of the Big Three Detroit carmakers return to Capitol Hill today for two days of congressional hearings that could prove critical in their quest for tens of billions of dollars in help from taxpayers.

The hearings begin this morning in the Senate Banking Committee, as the three try to convince still skeptical lawmakers that their plans for an industry turnaround justify a commitment of as much as $38 billion in public funds. An earlier round of hearings adjourned amid criticism of the executives -- for flying to Washington on corporate jets while complaining their companies were running out of cash, and for not presenting a more specific vision of how to make the U.S. industry competitive.

This time they arrive having agreed to cut their own salaries to a dollar a year, driving hybrids and prototype electric vehicles, and presenting their ideas for making Detroit competitive with the rest of the world.

They also have an offer of fresh cost-cutting measures from the United Auto Workers.

Yesterday, UAW President Ron Gettelfinger said that his union was ready to make new concessions despite a landmark cost-cutting labor contract signed just last year, as he urged Congress and the Bush administration to step forward with a multibillion-dollar auto industry rescue plan.

The UAW, whose membership at the Big Three Detroit car manufacturers has dropped by half in the past five years, said it would let General Motors, Ford and Chrysler delay payments owed to a massive health-care fund for retired workers and suspend a program that pays laid off workers for up to two years.

Gettelfinger made the new concessions reluctantly, complaining that the federal government was stepping in to rescue financial institutions while letting the car companies dangle near collapse. "I'm having a little problem myself understanding why there's a double standard here," he told reporters after a meeting of union leadership. "But we accept it and we'll play by those rules."

Despite the union's moves, the chances for a government bailout -- which GM and Chrysler say they need before the end of the month to avert financial collapse -- remained uncertain at best. Democratic leadership aides said prospects for the $28 billion to $38 billion package sought by the companies were dim in the House. Auto industry sources said that House members were being flooded with mail from constituents opposed to federal help for the companies.

The White House, however, appeared to leave all possibilities open. Spokeswoman

Dana Perino said the administration, which has urged Congress to divert $25 billion in funds authorized last year to promote fuel efficiency, needed more time to evaluate the plans.

"I think that to the American people, that giving $25 billion in taxpayer dollars to a specific industry is generous," Perino said. "But these are very serious times, and I'm sure the companies have spent a lot of time thinking through what they think they will need."

The union's concessions came as top executives for the companies made the rounds in Washington to rally support for the bailout.