- Maximum Bob Goes Full Throttle For GM
- GM's Second Chance
- Are Diesels Better Than Hybrids?
- Residual Values Hold Up Through Bankruptcy
- GM A Step Closer To Exiting Bankruptcy
- Are Gas Prices Still Scaring Car Buyers?
- Ford Passes Toyota For #2 In The U.S.
- Studs, Duds, And The Musical Chairs In Autoland
- Going Fast. Deals And Models Harder To Find
- GM Enters Stretch Run To Exit Bankruptcy
|
CNBC'S MOST SHARED
- Unemployed? Bored? Make Money Playing Beer Pong
- Social Networking's 'Naked' Truth
- The Highest Grossing (Inflation Adjusted) Movies of All Time
- WPP's Sir Martin Sorrell on the Ad Recession
- Merrill's McCann Seen as UBS Wealth Frontrunner
- Geek Squad V. Gizmodo
- Warren Buffett's Top Three Investment Rules for the Average American
- Why You Should Watch Fund Flows
- Roginsky: No More Mr. Nice Guy
- Eric Schmidt on Government Scrutiny and Economic Recovery
- Market 360: The Week's Best & Worst
- Geek Squad V. Gizmodo
- Brandt: Google Chrome OS in the Post-PC Age
- Other People Are Weirder Than We Are
- Bank Failures: Is The Nightmare Over? (Video)
- California Here I Go? No.
- Roginsky: No More Mr. Nice Guy
- Commercial Conundrum
- Stimulus Will Kick in Later this Year: President Obama
- Lender CIT Group Hires Premier Bankruptcy Adviser
- Government Selling Bank Stakes for Too Cheap: Panel
- Buffett's Top 3 Investment Rules for Average Americans
- Market Insider: Earnings Loom in the Week Ahead
- Bulls Get Summertime Blues, But It's Hot Fun for Bears
- As Banks Fail, Strong Institutions Become More Visible
- GM IPO in Second Quarter 2010 at the Earliest: CFO

- Merrill's McCann Seen as UBS Wealth Frontrunner
RSS FEED

If you've been reading the headlines this week, you've probably seen stories about the big 3 planning to push for pay and benefit cuts totaling 30%. Often the headline is accompanied by a sub-headline saying the United Auto Workers and the Big 3 are headed for a collision course. Folks, get ready for a long hot summer of posturing, trial contract offers being floated, and the yes, the very real possibility that we could see a work stoppage.
What many of you don't know is that many of the parties involved have been telling their side of the story to reporters in off-the-record briefings designed to give reporters facts, figures, and scenarios to support the case for how the next contract should be structured. on top of that, there are people talking to reporters off the record to "spin" their particular approach. From all of these discussions, I've reached some early conclusions.
1. The Big 3 WILL be adamant about moving their labor pay and benefits closer to their foreign competition.
![]() |
2. Will the UAW dig-in and go for the "usual" contract demands or be creative with new ideas?
UAW president Ron Gettlefinger and his team are savvy negotiators. He spent the better part of the last year on the DaimlerChrysler [DCX
Loading...
()
] board so he knows first hand that the numbers for Chrysler are legit, and he also knows the situation at Ford [F
Loading...
()
] and GM [GM
Loading...
()
] . While Gettlefinger may be a lifelong UAW man, he's also progressive in his approach to working with the big 3 (look at the health car agreements with Ford and GM in the last couple of years). I expect him to be creative in considering other ways to make sure the UAW members can benefit if the big 3 get contracts that make them more competitive- profit sharing is one example.
3. Will there be a work stoppage?
It's too soon to tell. Many involved believe the talks will go down to the wire on September 15th, and I think there's a decent chance we could see a work stoppage. When you have the groups bargaining over potentially substantial cutbacks, the odds of them being unable to get a deal by mid-September will grow. Also, the automakers have the cash to withstand a strike if it happens. That doesn't mean they want one, but it does give them the flexibility to dig in and show the UAW that they are serious about seeing their costs reduced.
Questions? Comments?







