The UAW has typically engaged in pattern bargaining with the traditional Big Three automakers, agreeing to similar wage and benefit packages at all three companies. In 2005 the union agreed to changes in the coverage for both active and retired workers at GM (Charts) and Ford (Charts) that are expected to save GM an estimated $1 billion a year in health care spending, while saving Ford an estimated $850 million annually. But the health care plan changes at GM and Ford have not been popular within the union. Only 51 percent of rank and file UAW members at Ford voted to ratify the changes there in December, despite the support of union leadership. But unlike the core North American automaking operations at GM and Ford, the Chrysler unit at DaimlerChrysler (Charts) has been profitable for the last 12 quarters, and while it expects to post a loss this period, it expects to return to profitability in the fourth quarter. Still after being the only one of the Big Three to post improved U.S. sales in 2005, Chrysler has seen its 2006 sales fall 7.8 percent through August. That's better than the larger sales declines at GM and Ford, but still losing ground to import brands such as Toyota Motor (Charts). In fact, this year Toyota has captured the No. 3 spot in U.S. sales from DaimlerChrysler. Toyota and other import brands also don't have the health care costs, particularly for retirees, being paid by the U.S.-based automakers. The paper does not quote any union officials when detailing reluctance to the concessions. Chrysler officials were limited in their comments on the talks. The paper reports that Chrysler CEO Tom LaSorda told reporters last month, "We hope to get this thing resolved soon. There's no timetable. We keep talking about pattern agreements. We feel that's important."
GM, Ford woes could bite Chrysler next
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