Gettelfinger Says UAW, Chrysler Need To Fix Health Care Concerns

United Auto Workers (UAW) President RonGettelfinger said in March that the UAW had
Gettelfinger said last Monday that the union mustfinished a review of Chrysler's finances to
find a way to give Chrysler health caredetermine if the concessions are warranted. But
concessions, similar to those given to Generalhe would not state the outcome of the review.
Motors Corp. and Ford Motor Co. in 2005.Gettelfinger's comments on Monday acknowledge
"We've been talking to Chrysler quite frequently -that Chrysler has a problem that needs to be
we do need to find a way to fix the problemaddressed. UAW spokesman Roger Kerson and
there now that Chrysler is in a downward mode,"Chrysler spokeswoman Michele Tinson would not
Gettelfinger said in an interview on WJR-AM incomment beyond Gettelfinger's remarks.
Detroit. Like the K&N filters, the concessions haveBoth the UAW and Chrysler have been
to sift partiality between automakers and theirnegotiating on the health care concessions in
workers.advance of national contract talks with the Detroit
A couple of years ago, the UAW gave healthBig Three that are scheduled to formally start in
care concessions to Ford and GM that saved theJuly. But so far, no health care agreement has
companies billions of dollars. Nonetheless, the unionbeen agreed upon.
declined to grant the same deal to ChryslerUnder UAW's 2005 agreement with GM, hourly
because of its stable financial condition at the time.workers would contribute $1 per hour in future
Collectively, the U.S.-based automakers have overpay increases to a new fund to help pay for
$100 billion in long-term retiree health care costsretirees' health coverage. Single retirees would pay
that analysts say must be slashed.up to $370 a year in deductibles and fees for
Chrysler's German parent, DaimlerChrysler AG,their coverage. And most retirees and all active
earlier announced that it would sell a controllinghourly workers would contribute higher
stake of its American operations to private equityco-payments for their prescription drugs.
firm Cerberus Capital Management LP. Analysts inUnder the deal with Ford, retired autoworkers
the industry said that Cerberus likely will demandwould start paying monthly contributions, yearly
deeper concessions from the union than Daimlerdeductibles and co-payments for some medical
would have. Cerberus has said that it will leave theservices up to a maximum of $370 a year for
negotiations to Chrysler officials, led by Chryslerindividuals and $752 for a family. Hourly workers
Group President Tom LaSorda. "I'm pleased tohave no deductibles or monthly contributions, but
say discussions I've had with (Cerberus)... havethey must contribute part of their future wage
been very professional," Gettelfinger said. "Theyraises to a trust for future health care expenses.
have a lot of confidence in Tom LaSorda.... TheyAnalysts noted that while Chrysler was profitable,
have confidence in the process that has beenit was unlikely that any health care concession
established."agreement would be approved by UAW
In 2005, the Chrysler made $1.8 billion, but themembers. But since the situation has changed, a
company was badly hurt by the rising gasolinevote may come out differently.
prices and the shift of the market to smallCerberus has said that it will leave the negotiations
fuel-efficient cars. To note, gas prices rose toto Chrysler officials, led by Chrysler Group
around $3 per gallon. In 2006, the AuburnPresident Tom LaSorda. This is done despite the
Hills-based automaker said it lost $618 million andfact that Cerberus already has executives inside
$1.98 billion before interest and taxes in the firstChrysler's headquarters.
quarter of this year.