Chrysler workers await answers, weigh options

Discussion in 'General Motoring' started by Jim Higgins, Feb 21, 2007.

  1. Jim Higgins

    Jim Higgins Guest

    Chrysler workers await answers, weigh options
    http://www.freep.com/apps/pbcs.dll/article?AID=/20070221/BUSINESS01/702210318/1014

    A week after executives unveiled a plan they said would provide a clear path
    to profitability, Chrysler Group workers say they're as confused as ever
    about the future of their company and their job security.

    Details of the 13,000 job cuts have not been laid out, leaving many
    wondering if they'll be offered a buyout or early-retirement package -- and
    just what such an offer might look like. Analysts and media also continue to
    speculate about a possible sale of the Chrysler Group, a division of
    DaimlerChrysler AG.

    After being with the company when it changed ownership once before, John T.
    Mateik, a 52-year-old electrician at Chrysler's Warren Truck plant, said
    he's ready to take an offer and retire.

    "I'm definitely going this time," said Mateik, who started at Warren Truck
    34 years ago. "I'm just tired of the whole game."

    In an already shaky Michigan auto industry, the Chrysler Group's job cuts
    and possible sale have created even more uncertainty for autoworkers.

    The sale of the Chrysler Group likely would mean more job cuts and plant
    closings beyond the 13,000 announced, said Peter Berg, an associate
    professor at Michigan State University's School of Labor and Industrial
    Relations. A new owner would be looking to consolidate operations to save
    money, he said.

    The UAW might have a stronger voice if the acquisition were made by General
    Motors Corp., which already works with the UAW, Berg said. Foreign
    automakers largely have kept the UAW out of their plants.

    Ultimately, though, the UAW and its members have little role in determining
    where Chrysler ends up, Berg said. "They can have discussions with people,
    but they don't have shares, a huge block of shares," he said. "They wait it
    out. That's what they do."

    The UAW did not return calls Tuesday about the possible sale of the Chrysler
    Group. It issued a statement last week saying it was working to lessen the
    impact of the job cuts on members.

    UAW members at several Chrysler Group plants said they're not sure what to
    think. Some believed the Chrysler Group could be sold because German
    shareholders are ready to dump the division. Others thought the idea of a
    sale was far-fetched -- just media hype.

    Gary Pacheco, a 50-year-old worker at the Chrysler Group's Trenton Engine
    plant, said he initially discounted talk of the Chrysler Group being sold,
    but he's not so sure anymore.

    "If you asked me two days ago, I would have said 'No way in hell. Nobody is
    going to buy them,' " Pacheco said. "As of right now, I have no idea. I'm
    surprised" billionaire investor Kirk "Kerkorian hasn't popped back up."

    Pacheco said he'd like to stay with the company but is preparing for tough
    times ahead. He's not sure how the buyouts and early retirement packages
    will shake out for him.

    "My main concern right now is paying off any debt I've got, so when they
    pull the plug on my job, I don't owe anybody," Pacheco said.

    Jason Craig, a 33-year-old worker at a Chrysler Group parts center in Center
    Line, said he's skeptical of the sale talk. "The media is making more out of
    it than what it is," he said.

    But the 13,000 job cuts provide enough uncertainty on their own and could be
    just the start, Craig said. Married with two young children, he would like
    to stay at Chrysler but he's not sure enough older workers will take the
    buyouts to keep his job safe.

    Craig worries long-term that more work traditionally done by UAW members
    will be outsourced to lower-paid workers at suppliers. He's not sure what he
    would do if he's forced out.

    Mateik, the Warren truck electrician, also said he does not know what to
    expect anymore. He doubts GM is in a financial position to acquire the
    Chrysler Group, but a foreign automaker might have the money. A Chinese
    company would love to get a foothold in the United States, he said.

    "There's a lot of rumors going around, a lot of speculation," Mateik said.
    "I'm not happy about it. When I started here, it was Chrysler. I didn't want
    to hire in at a foreign company, but obviously, that's not the way it is
    now."
     
    Jim Higgins, Feb 21, 2007
    #1
Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.