DETROIT, Nov 15 (Reuters) - U.S. automakers urgently need a loan to survive plunging vehicle demand but their workforce has already made enough concessions, United Auto Workers President Ron Gettelfinger said on Saturday.
Gettelfinger, in a rare news conference, said the General Motors Corp, Ford Motor Co and Chrysler LLC were a critical part of the economy and needed the aid before President-elect Barack Obama takes office in January.
'We need to get this bridge loan and we need it in this lame duck session,' he said, referring to next week's congressional session which will discuss emergency aid for the 'big three' automakers.
Gettelfinger said it was unfair to blame UAW workers and retirees for the problems facing the U.S. automakers.
'We have made dramatic, dramatic changes,' Gettelfinger said, referring to concessions UAW made in its contracts with the automakers.
A health care trust fund, known as a voluntary employee beneficiary association, was the centerpiece of a cost-cutting contract that the UAW negotiated with the automakers last year. The trust fund will take effect in 2010 and is expected to cut costs for the automakers by covering health care costs for over 700,000 UAW-represented workers and retirees.
Detroit automakers have sought emergency assistance to help them survive a steep and worsening drop in sales that they blame on the global credit crisis and slumping economy.
GM has said it could run out of cash by early next year.
Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee, is holding a hearing Nov. 19 on legislation to extend up to $25 billion to GM, Ford and Chrysler at which GM CEO Rick Wagoner of GM, Ford CEO Alan Mulally and Chrysler CEO Bob Nardelli along with Gettelfinger are expected to testify.
(Reporting by Poornima Gupta and Kevin Krolicki; Editing by Alan Elsner) Keywords: UAW/ (poornima.gupta@reuters.com; 313-967-1901; Reuters Messaging: poornima.gupta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Gettelfinger, in a rare news conference, said the General Motors Corp, Ford Motor Co and Chrysler LLC were a critical part of the economy and needed the aid before President-elect Barack Obama takes office in January.
'We need to get this bridge loan and we need it in this lame duck session,' he said, referring to next week's congressional session which will discuss emergency aid for the 'big three' automakers.
Gettelfinger said it was unfair to blame UAW workers and retirees for the problems facing the U.S. automakers.
'We have made dramatic, dramatic changes,' Gettelfinger said, referring to concessions UAW made in its contracts with the automakers.
A health care trust fund, known as a voluntary employee beneficiary association, was the centerpiece of a cost-cutting contract that the UAW negotiated with the automakers last year. The trust fund will take effect in 2010 and is expected to cut costs for the automakers by covering health care costs for over 700,000 UAW-represented workers and retirees.
Detroit automakers have sought emergency assistance to help them survive a steep and worsening drop in sales that they blame on the global credit crisis and slumping economy.
GM has said it could run out of cash by early next year.
Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee, is holding a hearing Nov. 19 on legislation to extend up to $25 billion to GM, Ford and Chrysler at which GM CEO Rick Wagoner of GM, Ford CEO Alan Mulally and Chrysler CEO Bob Nardelli along with Gettelfinger are expected to testify.
(Reporting by Poornima Gupta and Kevin Krolicki; Editing by Alan Elsner) Keywords: UAW/ (poornima.gupta@reuters.com; 313-967-1901; Reuters Messaging: poornima.gupta.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.