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Time for sacrifice

United Auto Workers agrees to concessions as Big 3 seek aid

December 04, 2008|By Jim Puzzanghera , Tribune Washington Bureau

The executives traveled to Washington this time in fuel-efficient hybrid vehicles after being roundly criticized for jetting in last month on separate private planes. The public relations offensive continues this morning, when GM, Ford and Chrysler, along with Sen. Carl Levin, a Michigan Democrat, plan to show off their advanced technology vehicles on Capitol Hill before the hearing.

The automakers face a tough sales job. A CNN/Opinion Research Poll released yesterday found that 61 percent of Americans oppose a bailout.

But the UAW is a major supporter of Democrats and helped President-elect Barack Obama win key Midwestern states such as Michigan and Ohio, so party leaders don't want to let one or more of the automakers fail, said Ross Baker, a political science professor at Rutgers University.

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"The fact that they have given the heads of the automobile companies a makeup exam is an indication that they regard the support of unions as crucial and they don't want to desert a friend," he said.

Opponents of bailing out the automakers have pointed to the union contracts, arguing that generous pay and benefits have kept GM, Ford and Chrysler from being more competitive with foreign automakers. The companies and the UAW said major concessions in 2007 will eliminate most of the cost differences by 2010.

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