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UAW makes concessions to moribund auto makers
By EmploymentCrossing.com
http://www.EmploymentCrossing.com
United Auto Workers President Ron Gettelfinger has announced the union will surrender job security protections, and delay payments to a retiree health care trust, in concessions intended to help US automakers get government aid to survive the economic meltdown.
The UAW will also consider other changes to contracts reached in 2007 with General Motors, Chrysler and Ford.
Details still need to be worked out, as does the time frame, but quick action is expected. Some changes may require approval of UAW members, others may not.
All three Detroit-based automakers said they needed new concessions from the union, in restructuring plans submitted to Congress seeking a combined $34 billion of aid.
The union and automakers reached agreement last year on contracts that created a Voluntary Employee Beneficiary Association, or VEBA, to take over an estimated $80 billion of retiree health care liabilities starting in 2010.
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