Could UAW Help GM?
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Updated: 6:29 AM Nov 12, 2008
Could UAW Help GM?
It's happened before... Could the UAW make concessions to help a failing automaker?
Posted: 10:51 PM Nov 11, 2008
Reporter: Jamie Edmonds
Email Address: jamie.edmonds@wilx.com
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The UAW and GM. It's a partnership that's lasted through the good times and the bad.

"It's not an 'us against them' relationship anymore," Local UAW President Brian Fredline said. "We understand for survival, we're both in this together."

So then, is there more the UAW could do to help the failing automaker? It's happened before, said John Revitte, professor of labor relations at MSU.

"In the late 70s it looked like Chrysler was going to go out of business," Revitte said. "We had an oil crisis and people were saying they couldn't afford big cars anymore."

Back then, Revitte said, the UAW conceded $15,000 in wages and benefits for each employee over three years... and it helped save the company.

"Chrysler moved on and found profitability," he said.

Today, Fredline said, the UAW has already made concessions through their national agreement negotiated a year ago.

"The UAW members have not had a raise tied into a wage in about six years," Fredline said. "So, that's one thing we can do to help."

Plus, the UAW also agreed to move their health benefits off of GM's balance sheet to a separate trust fund, which Fredline said saved the company $70 billion.

"It's not the labor contract thats GM's problem right now," he said. "Its the market place and the economy as the whole."

But if things don't turn around, Fredline said, the UAW could negotiate further.

"If our leadership tells us that's the direction we're heading for survival and job security," Fredline said, "the UAW has always supported our leaders and we will in the future."

Fredline said there has been no mention of further negotiations with the UAW and GM.


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