By K.O. Jackson, Kokomo Tribune business writer
kirven.jackson@kokomotribune.com
Gray clouds and rainy weather matched the mood of some Kokomo United Auto Workers members as they prepared to vote Wednesday morning.
The UAW rank-and-file voted at Local 1166 and Local 685 to ratify labor agreements that would help Chrysler LLC avoid bankruptcy and meet today's federal deadline to restructure.
The automaker - spending more than $1 billion a month - has been operating on a $4 billion loan from the U.S. The nation's third largest automaker has until today to get union concessions, reduce debt and complete a pending partnership with Italian automaker Fiat Group SpA or face liquidation.
However, in Kokomo, Wednesday was the deadline for the UAW's 4,500 members to cast their vote: Yes or No.
Though the measure garnered overwhelming support by local union members, leaders characterized it as "painful."
"It was hard to swallow the cuts, but we have to preserve jobs and the future," said Shawn Fain of Local 1166, who was on the UAW/Chrysler national negotiating committee. "We're not happy about it, but you have to do what you have to do. Hopefully we can get back to selling cars and this will be a bad memory like 1979 and '80."
Of the 503 skilled and non-skilled Local 1166 workers that voted, 86 percent approved the agreement. The measure saw similar approval with members of Local 685, where 87 percent of non-skilled laborers and 79 percent of skilled laborers voted in favor.
While the total head count wasn't immediately available, Rich Boruff, president of Local 685, said it was the largest turnout for a vote the local organization had ever had.
"It was very painful, but it had to pass and the cuts that had to be made had to be made," said Boruff.
According to reports, union members voted on a settlement that include: freezing wage through 2011 for temporary and part-time workers; removing restrictions on the number of new workers who can be hired at less than $15 an hour, and allowing Chrysler will pay less into the UAW's retiree health-care fund.
The concessions mirror what the CAW approved last week. Other concessions include: union members surrendering Christmas bonuses for the next two years, a shorter Easter vacation, eliminating tuition-assistance, reduce laid-off workers compensation, and limiting break time to 40-minutes a shift.
In addition, if Chrysler survives, reports indicate Fiat's investment in Chrysler's operations and new U.S. jobs is expected to exceed $8 billion.
"That wasn't so bad," said Eric Friedline after voting. "I've been here 15 years. It's for the best. We get a 55 percent part of the company. That gives us a little choice for our future.
"It hurts both ways. It is depressing. But that is the way the economy is. You take the good and the bad."
The bad for Brian Harlan wasn't so much the personal loss, but losses for those retirees who came before him.
In 2007 bargaining, retiree medical benefits were an issue. As a result, a Voluntary Employee Beneficiary Association (VEBA) was established that was to be responsible for retiree medical benefits beginning in 2010.
To cut costs, the VEBA had to be restructured. Retirees lost vision and dental programs, their catastrophic plan and coverage for erectile dysfunction medications.
"They really put it to the retirees and that's not right to do," said Harlan. "They served their time. They put in 30 years. They can't come back to work and they can't go out and get work. What are they going to do. I am concerned about them. It's wrong to turn your back on your previous brothers. That's not right."