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