UAW rejects blame for auto bailout failure

By John Paul (jpaul@wsbt.com)

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UAW Local 5 officials declined to comment, adding that the Union did not want to get in the middle of the national issue. They did stress that they were concerned about employees and jobs.

UAW Local 5 officials declined to comment, adding that the Union did not want to get in the middle of the national issue. They did stress that they were concerned about employees and jobs. (WSBT photo)

By WSBT News1

Story Created: Dec 12, 2008 at 4:43 PM EST

Story Updated: Dec 12, 2008 at 8:52 PM EST

The President of the United Auto Workers rejects the notion the Union was responsible for the bailout rejection from the Senate.

The receptionist from the UAW Local 5 said officials declined to comment, adding that the union did not want to get in the middle of the national issue. They did stress that they were concerned about employees and jobs.

While vehicles from local GM and Chrysler dealers remain parked on the lot, IUSB economics professor Grant Black said efforts to save the embattled Big Three presses on.

“There were a lot of people who were at work here, that were players at the table, that couldn't find a good agreement,” Black said.

This, after the Senate rejected the $14 billion in aid GM and Chrysler said would save them from bankruptcy.

“The republicans were requesting that the UAW cut wages sometime in 2009, and the union refused to do that,” said Black.

Repeated calls to the Detroit UAW office were not returned, but Ron Gettelfinger, UAW president, rejects responsibility for the bailout's failure.

“Organized labor was being treated with a double standard. The same as we saw in the financial markets,” said Gettelfinge in a press conference held early on Friday.

As the US Treasury Department steps in, the finger-pointing begins.

“If you want to cast blame, it probably falls under a few different players,” said Black.

"The UAW demonstrated leadership throughout the process,” said Gettelfinger.

Now, without the money, the auto manufacturers are still forced to cover expenses. GM wages, on average, are $69 per hour. Workers at Toyota and Honda earn about $48 per hour.

A lot of the costs these companies bear are these high labor costs," said Black. "That's the bulk of it."

The Big Three have already turned to the president and the Treasury Department, looking for aid to prevent the industry from possibly collapsing.

And the UAW has gone on the record saying they don't suspect they'll have to negotiate for the automakers to get the billions of dollars they are requesting.

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