Auto Workers Face Off With Chrysler Next

All three big automakers have now finalized deals

(NEWSER) - UAW workers at Ford overwhelmingly approved a four-year contract today that shifts responsibility for some retiree health benefits to the union, the Detroit Free Press reports. The agreement also allows Ford to hire new employees for lower wages and fewer benefits. The contract approval follows similar deals at GM and Chrysler, though Ford was the only one of the three to avoid a strike. More»

Privately owned automaker preparing for Chapter 11 should feds not help out

(NEWSER) - Chrysler has contracted a law firm to help it prepare for bankruptcy, the Wall Street Journal reports. The hiring of Jones Day suggests the automaker faces immediate failure if Congress decides to deny financial assistance to Detroit automakers. Jones Day has experience in automotive matters and has represented the United Auto Workers in many cases. More»

Cerberus relying on tough-talking new CEO to cut costs

(NEWSER) - Former Home Depot chief Bob Nardelli has a reputation for being a brusque, hard-edged maverick, and that’s exactly what his new bosses at Chrysler want, Reuters reports. Cerberus Capital Management hopes to stem losses at the automaker by cutting costs, particularly in the delicate area of unionized workers. Nardelli’s gruff style may improve numbers—or it may wind up confounding labor negotiations. More»

(AP) - United Auto Workers members have ratified a package of concessions designed to reduce General Motors' labor costs. Union president Ron Gettelfinger said today 74% of GM's production and skilled-trade workers voted in favor. The vote comes before the company's expected Chapter 11 bankruptcy protection filing Monday. Bankruptcy experts say having an agreement in place before the filing will help move the process through court more quickly. More»

(NEWSER) - The US will provide $5 billion in aid to the nation’s auto-parts manufacturers, a sector struggling because of the tenuous financial situation of Detroit’s Big Three car companies, the Wall Street Journal reports today. Many parts makers face bankruptcy, as they have not been paid for product delivered. The federal money will guarantee payment for shipments regardless of the financial state of the client. More»