Claims by the three major domestic automakers that they must cut average wage-and-benefit costs by $30 per hour to compete with Asian rivals are merely pre-negotiation posturing, two top United Auto Workers officials told members Friday.
In an Internet chat with union members, UAW President Ron Gettelfinger and Vice President Cal Rapson said they have heard reports of the $30-per-hour figure, but said they will not negotiate in the press.
The men were responding to a question about how to make sure General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group survive without giving major concessions.
But in answering a question from a GM retiree's spouse about problems with a mail-order pharmacy she is required to use, the leaders said the mail operation has saved millions of dollars in health care costs.
“We realize there have been problems with changing to the mail order prescription plan,” Rapson and Gettelfinger wrote. “It is vital that we reduce costs wherever we can to ensure we have health care coverage in the future.”
No mention was made during the hourlong chat of a potential agreement with GM and struggling auto parts maker Delphi Corp.
Delphi, GM's former parts-making arm that was spun off as a separate company in 1999, has said it needs a lower wage scale and other changes to compete against suppliers with cheaper labor costs.
Officials of GM, Ford and Chrysler all have said they need labor cost parity with Japanese competitors, mainly Toyota Motor Corp. and Honda Motor Co. Studies have shown the Detroit automakers make more than $2,000 less per vehicle than their competition, with much of that due to labor costs.
Gettelfinger and Rapson wrote that a strike is one of the union's options in upcoming contract talks. Informal talks already are under way, but formally begin on July 23. The UAW national contract with the automakers expires in September.
GM shares fell 31 cents to $35.65 in afternoon trading Friday, while Ford shares rose 15 cents to $9.06 and DaimlerChrysler's U.S. shares lost 62 cents to $90.49 Toyota's U.S. shares dropped $1.83 to $123.16.
