TOM KRISHERAP Auto Writer
3:31 p.m. EDT, May 11, 2010
DETROIT (AP) — The man expected to become the next president of the United Auto Workers says workers should share in the profits if the auto industry recovers. But he also wants to make sure Detroit automakers stay competitive.
UAW Vice President Bob King says unionized workers each gave up $7,000 to $30,000 per year in concessions to General MotorsCo., Ford Motor Co. and Chrysler Group LLC as the companies ran into financial problems last year and in 2008.
The union, he said, made tremendous sacrifices that helped all three automakers through a crisis, working with company management to make them more competitive.
But often after a crisis passes, management forgets about the sacrifices, King told an auto industry conference at the Detroit branch of the Federal Reserve Bank of Chicago.
If U.S. auto sales return to pre-recession levels of around 16 million per year, King said all three will see “astronomical” profits.
“Equality of sacrifice, there’s got to be equality of gain,” he told the group. “It’s our responsibility to make sure that in that turnaround, our members are treated fairly.”
King would not talk about the possibility of further concessions to the companies when contract talks take place next year. He said much of what will be discussed depends on the economy at the time and will be decided by the membership.
The UAW, though, faces a challenge of making sure the automakers’ fixed costs are competitive globally, he said.
Ford borrowed billions to stay afloat, while GM and Chrysler were forced to take billions in government aid and go through bankruptcy protection last year. Ford already is profitable, while Chrysler reported a first-quarter operating profit and GM is expected to show a profit when it reports earnings next week.
Union workers will not have job security, King said, if companies don’t have enough money to invest in new products, innovation and quality.
King was nominated in December by UAW leaders to replace President Ron Gettelfinger, who is retiring next month. An election will be held in June at the union’s convention in Detroit.
Courtesy of Orlando Sentinel