[Skip to the end]
Didn’t we just hear a speech from our President about the need to strengthen unions?
Mar 27 (Reuters) — The Obama administration will set a strict deadline for General Motors Corp and Chrysler LLC to reach cost-cutting deals with creditors and their major union even as it extends more aid to the struggling automakers, the New York Times reported on Friday.
The New York Times reported that the White House autos task force was likely to set a deadline of weeks rather than months for GM and Chrysler to reach a deal with creditors and the United Auto Workers. Under the terms of the $17.4 billion in emergency loans approved for the Detroit automakers by the Bush administration in late December, GM and Chrysler need to win concessionary agreements to reduce the amount owed to the United Auto Workers and other creditors. GM and Chrysler have reached agreements in principle to change provisions of their contract with the UAW that would reduce the average hourly cost for production workers, another provision of the loan deal.