Chrysler suitors seek union support

[Omaha Steve]

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070403/AUTO01/704030348/1148&imw=Y

Chrysler suitors seek union support

Firms hope to gain edge amid heated competition; organized labor concerned about impact on workers.

Bill Vlasic / The Detroit News

The three prospective buyers for the Chrysler Group are actively courting union support to bolster their chances of acquiring the U.S. division of DaimlerChrysler AG.

The bidders have separately made their cases for support to the United Auto Workers and the Canadian Auto Workers in hopes of gaining an advantage in the heated competition for Chrysler.

Officials from the UAW, CAW and the German union IG Metal are scheduled to meet today in Germany to discuss the Chrysler situation with labor representatives on DaimlerChrysler's supervisory board.

CAW President Basil "Buzz" Hargrove said Monday he has heard sales pitches from all three potential bidders -- Canadian supplier Magna International Inc. and private-equity firms Blackstone Group and Cerberus Capital Management.

But Hargrove, like his counterparts in the American and German unions, remains concerned about the impact on workers of a Chrysler deal involving private-equity buyers.

"They were saying, 'we are not as bad as some people say we are,' " Hargrove told The Detroit News.

"I don't buy that."

UAW President Ron Gettelfinger has criticized private-equity firms for "stripping and flipping" troubled companies such as Chrysler. Two labor members of DaimlerChrysler's supervisory board have also spoken out against private-equity ownership.

Officials from Cerberus and Blackstone, however, have attempted to ease organized labor's fear of an acquisition of Chrysler by private investors.

Magna, which is primarily non-union, has portrayed itself as the buyer who would keep Chrysler intact rather than slash jobs and sell off assets.

FULL story at link.