UAW Agrees to Contract Talks, VEBA Payment Delay
December 03, 2008
By Michelle Krebs
DETROIT -- The leadership of the United Auto Workers (UAW) union, meeting in an emergency session here Wednesday, said it will negotiate with General Motors, Ford and Chrysler to modify its current contract as part of the Big Three's plea to Congress for bridge loans.
UAW President Ron Gettelfinger said the union leadership also agreed to delay the Detroit three's payments to the Voluntary Employee Benefit Association (VEBA), which shifts retiree health care benefits for union members from the auto companies' books to a union-administrated fund.
The VEBA becomes official on Jan. 1, 2010. Billions of dollars' worth of payments were due in 2009 and 2010 by the automakers. The union did not say when those payments would now be due.
The UAW will suspend its controversial Jobs Bank, whereby union workers receive 95 percent of their pay when they are on furlough for up to two years. The number of people in the Jobs Bank has dropped dramatically but still has about 3,600 people in it.
The Jobs Bank was the source of much criticism in the last round of Congressional hearings when Gettelfinger and the Big Three CEOs were seeking $25 billion in bridge loans.
With the union leadership meeting over, Gettelfinger is heading to Washington, D.C. to join Ford CEO Alan Mulally, GM CEO Rick Wagoner and Chrysler CEO Robert Nardelli for more Congressional hearings on Thursday and Friday mornings.
Posted by Michelle Krebs at 9:50 AM under Chrysler , Ford , GM | Comments (1) | digg this | Seed Newsvine
Please congress, a $1 salary concession is nothing. Take away any parachutes and severely limit stock options. Demand the GM board, or much of it, resign and by all means make Wagoner fall on his sword.
Posted by: georgehughes35 | December 03, 2008 at 10:34 AM