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The first Mini rolled off the production line in Oxford, England 50 years ago Monday. Ian Robertson, board member at BMW...
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Current DateTime: 04:45:57 06 Jul 2009
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    • Mini Still Going 50 Years On  05 Jul 2009

        The first Mini rolled off the production line in Oxford, England 50 years ago Monday. Ian Robertson, board member at BMW, spoke to CNBC about the much-loved auto brand.

    • Downturn Boosts Aruba's Business  05 Jul 2009

        More and more people are working from home and travelling less through the use of video conferencing and secure data networks, says Dominic Orr, CEO of Aruba Networks. He sheds light on how the global downturn, technology and changing workplace trends have improved its business, with CNBC's Amanda Drury.

    • A Better Fit for Opel: BAIC or Magna?  05 Jul 2009

        Discussing the bidding race for Opel is Michael Dunne, VP of International Ops & MD of China at JD Power, speaking to Paul Schulte of Nomura International, and CNBC's Sri Jegarajah and Martin Soong. Dunne sheds light on the synergies through a deal with China's BAIC, and what Canada's Magna can offer to Opel.

    • Cyclicals Still Offer Value: Fund Manager  02 Jul 2009

        German stocks were lower Friday. Matthias Born from Allianz Global Investors sees value in "companies which are on historical low multiples," as he sees "re-rating potential left, especially for the cyclical part of the markets," like autos, chemicals and capital goods companies.

    • Chrysler June U.S. Sales Down 42%  01 Jul 2009

        Chrysler's June sales were down 42 percent in the U.S. CNBC's Phil LeBeau has the details.

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Current DateTime: 04:45:57 06 Jul 2009
LinksList Documentid: 30830722
Behind The Wheel
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Dec.05
11:31 AM ET
Friday, 5 Dec 2008
UAW Concessions: Just How Much Will They Give Up?

Ron Gettlefinger
CNBC.com
Ron Gettlefinger

The announcement by UAW President Ron Gettlefinger that his union may make material changes to its contract to help the Big 3 is a big deal.

This is the news Detroit, and more importantly, Congress has been waiting for. Without union concessions, getting a federal bailout would have been more difficult and the deal would not have been as lucrative.

The most important aspects of the UAW considering changes to its contract are the following.

• Delaying (with interest) payments the Big 3 are scheduled to make to the healthcare (VEBA) fund. This will give the Big three billions of dollars of breathing room in the months to come.

• Making changes in job security and work rules that could, potentially lower costs substantially for the Big 3. More importantly, they are changes the union can make without having to crack open the contract, which would require a vote by the rank and file. That will speed up the process and give all partied more flexibility.

• Suspend the "jobs bank". This is a move that will do more for the UAW's image then the bottom line of the auto makers. The jobs bank is a shell of what it used to be, with a fraction of the workers it used to hold, but the public will see it's curtailed use as a sign the UAW "gets it."

While many will say Congress needs to know exactly how much the UAW will sacrifice in dollars and cents, today's step should help Washington feel better about a buyout. Gettlefinger is a tough negotiator, but also very pragmatic. He knows the union has to step up and help the auto makers.

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