In a bid secure billions in low interest loans for the Big Three automakers, UAW president Ron Gettelfinger announced on Wednesday that the auto union would be willing to make more concessions. Although the UAW isn’t solely to blame for the current mess in Detroit, it’s widely believed the union’s past contracts deserve at least some of the blame.
Gettelfinger announced on Wednesday that the UAW would be willing to give up its ‘Job Banks’ in order for the Big Three to lock down the loans they need. The UAW’s job banks are essentially a pool of out of work autoworkers, whether by plant closures or other reasons. Their purpose is to keep enough skilled labor on hand in case the autoworkers need to boost production, but at a time like this, they cost the automakers more than they are worth. An unemployed worker in the job bank typically makes close to full wage and receives full benefits.
Additionally, the UAW will delay payments into a retiree healthcare trust. The new trust was negotiated into last year’s labor agreement, and called for the automakers to begin funding the union run trust in 2010. However, the UAW will delay those payments, which are expected to save the automakers $80 billion, according to Reuters.
Some of the measures will have to be voted on by UAW members, but both propositions seem to have the workers’ support. “If we don’t have factories, our contract will not mean anything,” General Holiefield, a vice president who oversees UAW ties to Chrysler , said.
