Home > Rookie > Union could meet resistance at Ford, Chrysler despite GM deal

  • Print
  • Email

Union could meet resistance at Ford, Chrysler despite GM deal

Agence France-Presse DETROIT, MICHIGAN The United Auto Workers (UAW) union could meet some resistance as it tries to wrap up contract negotiations at struggling Ford Motor and privately held Chrysler following Wednesday's landmark deal with General Motors, analysts said.



Union could meet resistance at Ford, Chrysler despite GM deal

While Ford would benefit significantly from the same kind of healthcare deal offered to GM, it could balk at the kind of job security concessions offered by its rival.

Officials at Chrysler have already said privately that their new owners are not interested in the massive cash outlay required to shift responsibility for retiree healthcare benefits to the union.

It appears Ford could accept most of the agreement the union negotiated GM, said Erich Merkle, an analyst with IRN.

"I would think Ford would fall in line pretty quickly," he said.

The tentative GM-UAW deal also includes a lump-sum payment instead of cost-of-living and annual wage increases, allowing GM to keep its base wage of US$28 (Bt960) per hour stable for the next four years, sources said.

While Ford would likely welcome these terms, a likely stumbling block would be Ford's plans to build a new generation of small cars at a brand-new plant in northern Mexico.

Union officials familiar with the bargaining told AFP that union negotiators are certain to press Ford to place the plant in the United States.

Many union officials said privately they were pleased UAW president Ron Gettelfinger had demonstrated his resolve by setting up picket lines at GM.

While the union made some concessions, it also made some important advances in the tentative agreement at GM, said Harley Shaiken, a labour expert from the University of California-Berkeley.

"There are some important gains for the union at the heart of the agreement," he said. "I think the agreement will secure good jobs that pay middle-class wages in the United States."

The creation of the VEBA (voluntary employee beneficiary association) funded by GM will also give the union a greater voice in the unfolding debate on heathcare and eliminates the potential threat of retiree healthcare benefits being eliminated should the auto-maker declare bankruptcy, Shaiken noted.

Gettelfinger said the trust was projected to be sufficiently funded to pay out benefits for the next 80 years.

The strike at GM was an invaluable experience for many young workers, even though it only lasted 40 hours, said Al Benchich, president of UAW Local 909 in Warren, Michigan.

"It was exciting," he said. "It's really something when you think about it that individual workers, acting collectively, can actually stop this giant corporation. I think that's very empowering."

Story/photo   AFP

Vocabulary

resistance, n: opposition; unwillingness to accept or agree to

negotiations, n: talking with a view to coming to an agreement or compromise (usually used in plural form)

struggling, present participle: fighting against difficulties; being in a bad situation

landmark, n: event which is important and will be remembered for a long time, and against which other actions will be compared

to fall in line, expression: to do the same as others are doing or have done before

tentative, adj: not certain; provisional; intended but not confirmed

lump sum, n: one amount of money; a single payment that covers the total amount

base wage, n: minimum wage; minimum amount of money a person can earn

picket line, n: a line of workers who prevent others from going to work during a strike

to declare bankruptcy, expression: to officially say that you have no money left to continue doing business

Questions

1. Why could the union meet resistance at Chrysler?

a. increasing workforce

b. extended retirement age

c. retiree healthcare benefits

d. government regulations on emissions

2. Why could the union meet resistance at Ford?

a. global warming

b. job security concessions

c. production technology upgrade

d. neighbourhood-watch programmes

3. What other demand might the union have of Ford?

a. employ more Mexicans

b. decrease working hours

c. produce cheaper cars for workers

d. place their new plant in the United States

4. What concession did GM get from the union?

a. Overtime work remains unpaid.

b. The base wage stays the same.

c. Work safety standards are relaxed.

d. All family members work for one wage.

5. How long did the strike at GM last?

a. 28 hours

b. 40 hours

c. 87 hours

d. 909 hours

Synonyms

Which of the following words or phrases replace the ones from the passage best?

1. wrap up

a. resist

b. disclose

c. package

d. complete

2. balk

a. envy

b. resist

c. support

d. press for

3. concession

a. denial

b. prohibition

c. compromise

d. condemnation

4. stumbling block

a. obstacle

b. guarantee

c. advancement

d. determination

5. resolve

a. resolution

b. weakness

c. subordination

d. thoroughness

KEY

Questions       1. c, 2. b, 3. d, 4. b, 5. b

Synonyms       1. d, 2. b, 3.c, 4. a, 5. a

By Ajarn Horst Baelz



Smart Life Photo Gallery

  • Ten Mathayom students were selected to participate in a workshop training at the Civil Aviation Training Centre organised by the Vchakarn.com website and the PTT Group. They also used flight simulators and practised flight observation.
  • Mahidol University International Collage holds an initiation ceremony to welcome “freshies” on June 10-11 at Kanchanaburi campus.
  • Youngsters on an environmental studies trip to Japan display their skills.
  •  Youngsters on an environmental studies trip to Japan display their skills.
  • Youngsters on an environmental studies trip to Japan display their skills.
  • Students meets farang: ‘Hello, mister, you understand me?’

  • Advertisement

    Search Search

    Privacy Policy (c) 2007 www.nationmultimedia.com Thailand
    1854 Bangna-Trat Road, Bangna, Bangkok 10260 Thailand.
    Tel 66-2-338-3000(Call Center), 66-2-338-3333, Fax 66-2-338-3334
    Contact us: Nation Internet
    File attachment not accepted!