UAW Focusing On Chrysler, Sets Aside GM Talks - Source
April 16 2009 - 6:25PM
Dow Jones News
The United Auto Workers placed its negotiations with General
Motors Corp (GM) on temporary hold this week so it can concentrate
all its efforts on reaching a new cost-cutting deal with Chrysler
LLC.
The move comes as the April 30 federally mandated deadline grows
closer, according to a person familiar with the talks. Chrysler
must reach new union cost concessions, reduce its debt and sign a
partnership with Fiat SpA by the federal deadline. The Obama
administration said it will provide more low-interest loans if
Chrysler achieves all of those requirements. Otherwise, the company
will be forced to file for bankruptcy.
GM has a June 1 deadline to get similar cost-concessions from
its unions and debt holders.
"Much of the focus with Chrysler is on reducing the benefit
packages," this person said, but asked not to be identified because
he doesn't speak for the UAW. "There is also debate on how Chrysler
will pay for the retiree costs in the future. The UAW is worried
that if Chrysler goes under, the members will be hit hard."
Chrysler must also reach a cost-cutting deal with the Canadian
Auto Workers. Formal talks are expected to re-start on Monday.
"Chrysler is committed to working closely with all constituents,
the Administration, U.S. Treasury and the Task Force over the next
30 days to reach a successful conclusion," Chrysler spokeswoman
Shawn Morgan said.
News of the UAW focus on Chrysler was reported earlier Thursday
by the Associated Press.
-By Jeff Bennett, Dow Jones Newswires; 248-204-5542; jeff.bennett@dowjones.com