United Auto Workers union head Ron Gettelfinger announced that the union’s workers could approve some concessions to the Big Three U.S. automakers if the right situation arises. UAW entered into new labor contracts with GM, Ford and Chrysler in 2007. Gettelfinger indicated that if the government authorized loans to the Big Three automakers, it would be willing to reopen the 2007 labor contracts and make concessions in order to keep the companies afloat.
How much are the unions willing to concede? No one knows and Gettelfinger is keeping his cards close to his vest. It’s a definite Catch-22. The government wants to make sure that the Big Three have a plan in place and are willing to make significant expense cuts (including employment expense cuts) before it will authorize the loans to the floundering companies. On the other hand, the Big Three cannot guarantee employment expense cuts until they get commitments from UAW that they are willing to do so. It’s a vicious cycle.
For the latest on the Big Three Predicament check out this Fox Business exclusive.
