Vol. 73/No. 18      May 11, 2009

The Chrysler deal alters terms of the union's 2007 labor contract. It suspends cost-of-living pay increases, limits overtime pay, reduces paid time off, and eliminates dental and vision benefits for retirees, the New York Times reported. Some 26,000 workers were to vote on the pact by April 29.

A statement released by the UAW said, "This concessionary agreement, while painful" can "help Chrysler return to viability." The company has already received $4 billion in bailout funds and is seeking another $5 billion. According to the Wall Street Journal, the agreement "is believed to include about a 50% reduction in the amount of cash Chrysler owes a $10 billion health-care fund." GM is demanding the same arrangement for its $20 billion debt to the fund.

Under the Obama administration's plan, Chrysler has until May 1 to "restructure" through a joint partnership with the Italian-based car company Fiat. Fiat is also considering taking over European and Latin American production of the Opel car from GM, leading some union officials in Germany to speak out against the job cuts and work rule changes this move will involve.
 
From 395,000 to 38,000 GM workers
GM is seeking an additional $13.4 billion in bailout funds—above the $15.4 billion it has already received—prior to a June 1 government deadline to "restructure."

The company announced April 27 that it will eliminate 21,000 jobs and end production of the Pontiac. This is in addition to the projections made in February to close 14 plants in North America by 2012. After making all these cuts GM will have 38,000 union workers in the United States, compared to 395,000 in 1970.

GM also announced it would shut the majority of its North American plants for much of this summer. Factories in Arlington, Texas; Flint, Michigan; and Fort Wayne, Indiana; will be down for at least eight weeks, reports CNN Money. Ray Young, the company's chief financial officer, told the Journal that despite these moves it's "probable" GM will still file for bankruptcy.

Auto workers' pensions are also on the chopping block. GM's pension system had a $20 billion shortfall as of Nov. 30, 2008. With the government's Pension Benefit Guaranty Corp. (PBGC) taking control of these funds in bankruptcy proceedings, only $4 billion of this amount would be paid out. As many as half of GM's 670,000 pension-plan participants would see their benefits slashed.

Chrysler's plan is underfunded by $9.3 billion. The PBGC would make only $2 billion of this amount available, according to Bloomberg News.  
 
17.4 percent unemployed in Spain
The official unemployment rate in Spain is now 17.4 percent, rising by 800,000 workers in the first quarter to a record 4 million, more than twice the European Union average, according to the National Statistics Institute. In Spain, laid-off immigrants from Latin America are being offered unemployment payments in a lump sum if they leave Spain and don't return for at least three years.

In an even harsher arrangement in Japan, hundreds of thousands of workers of Japanese descent from Latin America are being offered a few thousand dollars to leave Japan and never seek work there again. Many have lived and worked in Japan for many years. So far, only about 100 workers and their families have agreed to this deal, Japanese officials told the New York Times.
 
 
Related articles:
Vancouver hospital workers march, demand higher pay
Workers in N. Ireland continue auto sit-in  
 
 
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