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DaimlerChrysler and UAW Talks on Health Care Stalled


September 2006
 Filed under: DAIMLERCHRYSLER CORPORATE Car News | DAIMLERCHRYSLER CORPORATE Headlines
AUBURN HILLS, Mich., Sept. 8 /PRNewswire-FirstCall/ -- Statement from John Franciosi, Senior Vice President - Employee Relations, DaimlerChrysler Corp.
DaimlerChrysler and the UAW were unable to reach an agreement on health care at this time.

We were advised by the UAW that based on its financial analysis, it did not believe its members would ratify an agreement that achieved economic parity with deals reached at General Motors and Ford. The company was prepared to accept a proposal that did not reach full economic parity, however, the UAW was not willing to move forward with that proposal.

In this era of global competitiveness, health care relief is as important to DaimlerChrysler as it is to Ford and GM. At $2.3 billion this year, health care will represent DaimlerChrysler's single-largest fixed cost.

As Ron Gettelfinger said recently, the domestic industry needs a level playing field with transplant manufacturers. Currently DaimlerChrysler's labor cost disadvantage to transplant automakers in the U.S. is $1000 per vehicle. Even a pattern health care agreement would reduce that disadvantage by only 20% for DaimlerChrysler. It is unfortunate that the UAW wasn't willing to assist us in taking the first step to leveling that playing field.

Sooner or later, we -- including the UAW -- are going to have to deal with this greater issue.

Source: DaimlerChrysler

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