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Automakers to submit plans to Congress

The Associated Press

The companies are expected to seek other concessions from the United Auto Workers, including the elimination of the much-maligned jobs bank in which laid-off workers keep receiving most of their pay.

Alan Reuther, the UAW’s legislative director, declined to say on Monday what kinds of concessions the union might take but said “we realize that all stakeholders need to come to the table to do what’s necessary to ensure the viability of the companies. We’re prepared to do our part.”

The UAW leaders subsequently disclosed plans for a meeting in an e-mail, obtained by The Associated Press, to local union presidents and bargaining chairmen.

Among the subjects to be discussed at the Wednesday meeting will be the possibility of restructuring the union-administered health care fund so that the automakers can delay payments to the multibillion-dollar fund, according to a person familiar with the matter.

The union leaders will also discuss potentially eliminating the jobs bank, in which laid-off workers keep receiving most of their pay. The person spoke on condition of anonymity because the details of the talks haven’t been finalized.

The automakers’ plans to Congress may also discuss more symbolic issues such as the use of corporate jets. During the congressional hearings, the executives were sharply criticized for traveling to Washington, D.C., separately by private jets.

Ford said that Mulally will travel by car when he returns later in the week. Chrysler and GM said their CEOs will not fly by corporate jet, but neither company has said if the executives will fly on commercial airlines or drive.

All three companies are expected to resist calls for bankruptcy. The executives said last month bankruptcy cannot be an option because no one would buy a car from an automaker that may not survive the life of the vehicle.

Auto executives plan to discuss the plans at a hearing before the Senate Banking Committee on Thursday and the House Financial Services Committee on Friday.

Commerce Secretary Carlos Gutierrez said in an interview that the plans need to address some of the key structural issues facing the industry, such as costs, their debt structure, their dealer network cost and their product lines.

Gutierrez said auto industry officials have told him they plan to present “strong plans” but he had not been briefed on the details.

“There needs to be a path to viability,” Gutierrez said.



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