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In June, the UAW held its Constitutional Convention. In his state of the union address, President Ron Gettelfinger highlighted the UAW's Marshall plan that would create tens of thousands of good jobs and, at the same time, promote the production of fuel-efficient vehicles and the use of alternative fuels. Also at the convention, Senator Barrack Obamam spoke about his proposed "health care for hybrids" legislation and how it could benefit automakers, auto workers, the environment and the economy.
The U.S. auto market is the biggest and most open in the world. The competition is intense, with every major global automaker fighting for every tenth of a point of market share.
Since our last convention, Toyota, Honda, Nissan, Hyundai and Kia have all either expanded existing facilities, opened new plants, or announced new plants in the United States.
The American auto market has been relatively strong - in fact, there hasn't been a single year since 1999 when sales have dropped below 16.5 million units. Yet the two largest U.S. automakers, General Motors and Ford, are losing money in their North American auto operations, and have seen their credit ratings reduced to junk status.
In addition, the Big Three's combined share of the U.S. market has dropped 16 points, to just 58 percent, over the last decade.
Obviously, that change is impacting automotive parts suppliers as well - in fact, since 2000, more than 160,000 jobs have been lost in the parts sector.
Like it or not, these challenges aren't the kind that can be ridden out. They demand new and farsighted solutions - and we must be an integral part of developing those solutions.
Earlier this year, President Bush brushed aside the notion that the federal government should do anything to level the playing field for the domestic automakers. He said they just needed to start building "relevant" products.
Whether Mr. Bush realizes it or not, the problem isn't "relevant" products, it's bad policies.
In January, we presented the UAW's "Marshall Plan" for the auto industry in a speech to the Automotive News World Congress.
The plan would provide incentives for all automakers and parts suppliers to build flex-fuel and advanced technology vehicles, like hybrids and clean diesels, and their key components right here in the United States. This is a win-win. The government incentives would be returned through increased payroll taxes generated through job creation.
Our plan can create tens of thousands of good jobs - the auto jobs of the future - and, at the same time, jump start the production and distribution of alternative fuels.
In addition, our plan can boost the sale of more fuel efficient vehicles, reducing both our dependency on foreign oil and cutting greenhouse gas emissions.
It's good for jobs, good for the environment and good for consumers.
This plan is attracting considerable interest on Capitol Hill. Unfortunately, the Bush-Cheney administration hasn't shown much interest so far; they're more concerned about Big Oil's agenda.
Nevertheless, we're going to keep right on working and building coalitions with enlightened political leaders in both parties - and with environmentalists who share our belief that good jobs, a cleaner environment and sustainable economic growth can - and must - go hand-in-hand.
And, if we're really serious about having a vibrant auto industry - and a strong manufacturing base overall - we also need new approaches to trade and health care.
On President Bush's watch, we've had an unbroken string of record-breaking automotive trade deficits.
This administration needs to step up to the plate and take action to ensure equal access to overseas markets, the enactment and enforcement of labor standards and environmental standards in our trade agreements and an end to currency manipulation that puts U.S. automakers at a severe competitive disadvantage.
It's time to level the playing field.
- Gettelfinger's full address is available on the UAW website
- Gettelfinger also spoke-out about the UAW Marshall plan in an op-ed article in the Detroit News
For years, we've hesitated to raise fuel economy standards as a nation in part because of a very legitimate concern - the impact it would have on the auto industry and auto workers. The auto industry is absolutely right when they argue that transitioning to more hybrid and fuel-efficient cars would require massive investment at a time when they're struggling under the weight of rising health care costs, sagging profits, and stiff competition.
But that's not to say that we have to leave the industry to face the transition costs on its own. Yes, we should raise fuel economy standards with the technology that car companies already have. But we should help them get there.
Right now, one of the biggest costs facing auto manufacturers isn't the cars they make, it's the health care they provide. Health care costs make up $1,500 of the price of every GM car that's made - more than the cost of steel. Retiree health care alone cost the Big 3 automakers nearly $6.7 billion just last year.
I believe we should make the auto companies a deal that could solve this problem. It's a piece of legislation I introduced called Health Care for Hybrids, and it would allow the federal government to pick up part of the tab for the auto companies' retiree health care costs. In exchange, the auto companies would then use some of that savings to build and invest in more fuel-efficient cars.
This is a proposal where everyone wins - auto workers can rest assured that their health care will be there for them when they retire, the industry will save money on health care, and they'll be free to invest in the kind of fuel-efficient cars that will create more jobs and strengthen their competitive advantage around the world.
I realize that changes like these may sound difficult at first - but we need to start thinking creatively about how to face these challenges. We need to start thinking big again.
I promise that in Washington, I will fight every day to make sure that you have a government that's on your side in this struggle. We can have a government that will fight for your wages; a government that provides health care and pensions you can keep no matter where you go or what job you have; a government that protects your right to organize and strengthens your ability to bargain. We can have all of this.
- Obama's full address is available on the UAW website
- More details of Obama's plan are available on our Health Care for Hybrids page