Bailout Watch 403: UAW Reaches "Tentative" Deal With Detroit 3. Only Not

by Edward Niedermeyer

February 17th, 2009 7:54 PM

bailout watch 403 uaw reaches tentative deal with detroit 3 only not

The Detroit Free Press is reporting that the United Auto Workers have reached a “tentative” agreement to modify its 2007 employment contract. But wait! “The UAW is withholding the terms of the tentative understanding pending completion of the VEBA discussions and ratification of the agreements,” says UAW boss Ron Gettelfinger. But give them the money anyway, is the clear subtext. Or, as the Freep puts it “the announcement by the UAW on Tuesday shows that the union and the companies are making significant progress.” When asked by the Freep, GM’s Rick Wagoner couldn’t even give a number just now. Wagoner claims that they went into talks with “ambitious” plans. And now there are now details. But everything’s peachy! GM’s take (from the viability plan): “As of February 17, the Company and the UAW have made significant progress on costs/work rules, which represent major steps in narrowing the 8 competitive gap. However, these revisions do not achieve all of the labor cost savings comprehended in the Company‘s financial projections.”

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4 of 11 comments

on Feb 17, 2009
Remind me again why I should have to pay for UAW pensions and benefits Because you didn't provide the government with massive amounts of money and support during the election now you will pay those that did.

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Landcrusher on Feb 17, 2009

Get: "Forget it, we aren't going for your plan" Wag: "Without your going along, we won't get money from Obama, and you won't get VEBA payoff" Get: "Fine, you tell him everything is fine, and get your check, and then we will figure it out later. Just don't tell anyone anything specific." Okay, who bets this isn't what happened?

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RangerM on Feb 18, 2009
Landcrusher You couldn't have hit that nail any better. First they (including B-O) lie to the public, then once the B-S is outed (by the NY Times? Fat chance), ask for forgiveness using your intentions (not your results) as your defense. Face it, this isn't about saving GM or Chrysler (that is incidental). It's a Federal Jobs program, until they file Chap 11. If the 10% labor cost of manufacture is true, it would be cheaper to send them to one big "Jobs Bank" and shutter the plants. There would be a 90% savings. Call them (GM/Chrysler, including their shareholders) what they are: welfare recipients.

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Mendicant Monitor on Feb 18, 2009

Thank goodness the Free Legal Services Program was spared! http://www.freep.com/article/20090217/BUSINESS06/902170344

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