No surprise here, as the UAW would fight hard to see that a merger between GM and Chrysler would not occur. If that happens, tons of jobs would be lost, and that's fighting words to UAW president, Ron Gettelfiger.
"I personally would not want to see anything that would result in a consolidation. That would mean the elimination of additional jobs," Gettelfinger said
Aaron Bragman of Global Insight said more likely the Chrysler deal, should it happen, would result in an acquisition and not a merger. There would a huge amount of excess manufacturing capacity, jobs and duplicate operations. More than likely the cuts would come at Chrysler's expense.
"(Gettelfinger's) concern is valid. There is too much overlap in terms of production and excess capacity," Bragman said. "It would not be a good thing for the UAW. The union's not a stakeholder. Obviously, it is an influential part of it, but any conclusion is going to result in job cuts."
Full story here and here.
Image: Bill Pugliano / Getty Images
ateixeira says:
08:05 AM, 10/15/08
The cuts will happen anyway if sales keep taking a nose dive.
firstwagon says:
08:10 AM, 10/15/08
I can see why the UAW is concerned. GM buying Chrysler would be just like when Chrysler bought AMC.
GM would keep Jeep and either drop or phase out everything else.
Most Chrysler workers would be out of work within a couple years.
I'm not really concerned about overpaid UAW members but the more choices on the market, the better. Most of Chryslers products are fixable, that where the effort should be.
Merger talks are a waste of time and money.
karjunkie says:
10:52 AM, 10/15/08
I suspect Jeep is the only marque to survive anyway. Either way, the UAW needs to get real on the condition of the US auto indusrty. Wishing away a bad situation is not the solution.
m_thrizzle says:
11:08 AM, 10/15/08
The UAW certainly doesn't help US automakers to succeed. Jobs will be lost regardless of whether they merge, since the companies are failing. I am appalled that UAW workers get paid more than aerospace engineers like me.
On the other hand, I half think that Chysler should just die. Their products are the worst of the 'big 3' and consistently just scrape by. They got bailed out in the 80's and 2 decades later are in big trouble again.
estreka says:
12:49 PM, 10/15/08
Cerberus' attempt to make a quick buck have backfired tremendously. If I were part of their private equity firm, I would be furious by now.
jederino says:
05:46 PM, 10/15/08
If UAW had their way, America would be closed to imports and we'd all be driving K-cars. There would be no innovation or competition or CHANGE.
I remember that the UAW was opposed to using robots in the assembly lines when they were first introduced. But get this: if a robot can do your job, be happy to get a better job. Same thing if you job is redundant.
That said, I want Chrysler to remain competitive and independent so there's more choice in the market place.
Unions should be unnecessary as a formal entity. Pensions and health benefits should follow the individual, and not come from the employer. That way, there is less need for a worker to feel indentured to a particular company. The employer and employee would be on an even playing field when negotiating fair employment terms.
benson2175 says:
11:07 AM, 10/18/08
They can't continue crappily assembling crappy cars forever.