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Testimony of UAW President Ron Gettelfinger Before the House Subcommittee on Energy and Air Quality


March 2007
 Filed under: ENVIRONMENT Car News | ENVIRONMENT Headlines
Wednesday, March 14, 2007 -- UAW President Ron Gettelfinger: Mr. Chairman, my name is Ron Gettelfinger. I am President of the UAW. We appreciate the opportunity to testify before this Subcommittee.

The UAW believes that climate change and energy security are serious problems.

We urge Congress to pursue initiatives that will deal with these issues in an integrated and balanced manner that protects jobs and benefits for American workers and retirees.

To address the problem of global warming, the UAW supports the establishment of an economy-wide mandatory tradable-permits program that will slow the growth of, and eventually reduce, greenhouse gas emissions in the United States.
We believe this type of "cap-and-trade" program should be done on an "upstream" basis in order to minimize regulation and to ensure that all sectors of the economy participate in a proportionate manner.

In considering auto sector policies to address climate change and energy security, the UAW believes Congress should keep in mind several key principles.

To be effective, any policies must address the fuels that go into vehicles, as well as the efficiency of the vehicles themselves.

The promotion of alternative fuels can make an enormous contribution to reducing greenhouse gas emissions and our dependence on foreign oil.

Furthermore, any auto policies requiring improvements in vehicle efficiency should include measures to help level the playing field in the automotive industry, and to provide struggling manufacturers with the resources needed for retooling efforts.

Any assistance should be tied to investments in domestic production that will generate jobs for American workers and help the overall U.S. economy.

It should also be structured in a manner that recognizes and helps to address the fundamental imbalance in the auto industry related to retiree health care legacy costs.

Without such measures, the UAW would be deeply concerned about the economic feasibility of any proposals to mandate significantly higher vehicle efficiency standards.

In light of the extremely serious financial conditions of GM, Ford and DCX, and the disparate burdens they face in retiree health care legacy costs compared to their competitors, the UAW believes that the imposition of stringent increases in the CAFE standards could lead to calamitous results.

This could include the closing of additional facilities and the loss of tens of thousands of additional automotive jobs in this country.

It could also include the loss of health coverage for 500,000 retired workers and their families.

The UAW urges Congress to explore the feasibility of establishing an additional carbon control policy requiring reductions in the carbon emissions of light duty vehicles, as well as reductions in the carbon intensity of the fuels that go into these vehicles.

This two-pronged approach could make a major contribution to reducing greenhouse gas emissions and contribute enormously to a reduction in oil consumption.

The UAW also urges Congress to use tax or other incentives to encourage domestic production of advanced technology vehicles and their key components.

As was demonstrated by a November 2004 study conducted by the University of Michigan, this type of approach would help to maintain and create tens of thousands of automotive jobs in this country.

At the same time, it would help to accelerate the introduction of these advanced technology vehicles, and thereby reduce global warming emissions and our dependence on foreign oil.

The UAW believes Congress should pursue several policies to promote the use of alternative fuels in motor vehicles. The UAW would support legislation mandating that certain percentages of all vehicles sold in the U.S. by each automaker must be flex-fuel capable by specified dates.

We also would support incentives or mandates relating to the conversion of filling stations so they have the capability to distribute alternative fuels.

The UAW believes that changes in the CAFE program are the least desirable option for addressing the problems of climate change and energy security.

Moving to an attribute-based CAFE system for passenger cars would enable auto manufacturers to offshore all of their small car production.

Over 17,000 American workers are currently employed in five U.S. assembly plants that produce small passenger cars.

Almost 50,000 American workers produce parts for these vehicles.

To prevent the loss of these jobs, and to prevent the auto companies from "up-sizing" their vehicles, thereby resulting in worse overall fuel economy, the UAW urges Congress to impose an "anti-backsliding" requirement on any new CAFE rules.

In conclusion, the UAW appreciates the opportunity to testify before this Subcommittee concerning the critically important issues of climate change and energy security.

We look forward to working with this Subcommittee to fashion measures that will enable the U.S. to make significant progress in reducing greenhouse gas emissions and oil consumption, while protecting jobs and benefits for American workers and retirees.

Note: President Gettelfinger also submitted written testimony to the subcommittee availa ble here:
http://www.uaw.org/news/07/031407uawtestimony.pdf

www.uaw.org

Source: International Union, UAW

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