Ron: We are especially pleased to welcome any first-time participants in the UAW's Q&A live web discussions and we certainly welcome back those who have participated in the past.

With me today is UAW Vice President General Holiefield who is the director of the UAW Chrysler Department as well as Heavy Trucks and General Dynamics. We look forward to answering your questions regarding Vice President Holiefield's areas of responsibility.

There may be questions submitted regarding auto or other negotiations that we cannot respond to at this time. However, we appreciate all of your questions and concerns and will do our best to respond to as many as possible.

Certainly the announcement on Monday that Cerberus will be the new owner of Chrysler is a concern to all UAW members who work at Chrysler plants. As most of you are aware, our union fought hard to keep Chrysler within DaimlerChrysler. Unfortunately, the company decided that was not an option.

After a thorough review and several meetings with the company, the UAW is ready to move forward with the new owner. Cerberus will honor the UAW contract, and as we enter contract negotiations this summer, the sale of Chrysler will not affect our bargaining goals as discussed at the UAW's Special Convention on Collective Bargaining.

Today's discussion is for one hour. Let's take the first question.

Ludington, Mich.: Gentlemen, as a Chrysler retiree and former chief steward at the old Mound Road Engine Plant, you can imagine my concern about the future of retirees' benefits with the advent of new buyers of the company. I realize it is too early to get to specifics, but there are a lot of anxious retirees besides myself who would like some peace of mind.

Ron, General: We will continue to protect our retirees in the future, just as we have in the past. The pension fund for Chrysler workers is, in fact, $2 billion over funded for financial accounting purposes, and pension benefits are secure. Additionally, Cerberus has committed to contributing an additional $200 million to the pension fund and Daimler is providing a conditional guarantee of $1 billion for up to five years.

Indianapolis: General Holiefield: What do you consider the most problematic issue in the upcoming negotiations with International Truck and Engine - health care or work rules? Thanks.

Ron, General: The UAW is looking forward to going into these negotiations to get the best possible contract for our members. It would be speculation to narrow down the issues before negotiations have opened and discussions have taken place with the company. These, as are all negotiations, are important to our union, and it is our intention to do the absolute best job we possibly can for our membership.

Auburn Hills, Mich.: A letter dated May 7, 2007, to Mr. General Holiefield from DCX VP Ken McCarter states that it will examine all areas for outsourcing and competitiveness to include 17 employees from (CCA) Component Cost Analysis. What recourse do we have for those who are not near retirement for re-training, or another placement in the company?

Ron, General: These discussions are ongoing and will continue until they're resolved. We will advise the local union leadership of the outcome once the talks have concluded.

Woodleaf, N.C.: Will the UAW ever consider a pension plan for members? I've seen several companies falter and the retirees lose all they thought they would have. It is a very scary world we live in and I feel we can trust our union to help.

Ron, General: These are very tough times for America's workers. Without the protections of a union contract, workers are often left out in the cold when an employer moves or closes down. The UAW has and will continue to negotiate responsible agreements that include pension plans for our members.

Akron, Ohio: Throughout the long wait for a buyer, Mr. Gettelfinger and the UAW have expressed disdain for a private equity group buying the company. Now, within minutes of the sale, both are coming out with statements expressing great joy and confidence that this transaction will be the best for all parties. What has changed? What protections and/or guarantees have been made for the workers? Is the federal government going to be asked to guard against the "stripping" and selling off of this company? Why has the UAW been so silent on the facts of how the Germans intentionally drove this American institution into the ground?

Ron, General: Thank you for these questions. What has changed is that the sale is no longer speculation, it's a reality. We were not a part of the bidding process nor did we have input in the selection process. However, as a member of the Supervisory Board of DaimlerChrysler, I had an in-depth meeting with Dr. Dieter Zetsche and Tom LaSorda where the process of selecting the preferred investor was fully explained and that the status quo for the Chrysler Group was no longer an option.

Both General and I, as well as the International Executive Board, believe that this outcome will be to the benefit of our active and retired membership. In time, we hope you will come to feel the same way. In the meantime, it's time for us to close this chapter and move forward.

As was said in the opening statement, Cerberus will live up to the terms of the current UAW contract.

Woodleaf, N.C. : Sir, Do you feel that the truck market will see a burst in sales by the end of this year?

Ron, General: We are certainly concerned about our members who are facing layoffs because of the downturn in the market. The second quarter was considerably worse than anticipated. It is projected to increase for the third and fourth quarters, however it is all based on customer demand.

Redford, Mich.: Is Cerberus still going to cut the 13,000 jobs or will that number go up, and will they honor the IPRs and VTEPs that have been taken?

Ron, General: The recovery plan remains in effect. The numbers have not changed. The incentive packages as negotiated with DaimlerChrysler for specified locations and up to the number agreed upon will be honored.

We have the following commitment in writing:

"You should know that there are no new plans -- other than those previously announced -- to reduce headcount. Excluding abnormal market conditions and productivity, there are no additional job cuts in connection with the transaction announced. This announcement also will not impact the provisions of the early retirement and buyout packages previously announced."

East Syracuse, N.Y.: Hi, Ron, I am an employee at New Venture Gear which will be sold to Magna in September 2007. I have 23 years and don't know with the sale now to Cerberus if I should transfer to another Chrysler facility. A lot of us at the plant would like to know if we could get the $100,000 that has been offered to selected plants. I myself, as many others I know, would take the money instead of transferring! With only four months to go for us to decide what to do, could you possibly give me some insight on what will happen to the New Venture Gear UAW workers.

Ron, General: New Venture Gear has been purchased by Magna and all UAW-represented workers will continue to be protected under a UAW-negotiated agreement. Currently, the VTEP is $50,000. Negotiations are ongoing as the UAW continues to fight for our members.

Syracuse, N.Y.: On a radio talk show back on April 20 of this year, you stated that being purchased by an investment firm wasn't the best option for workers under DaimlerChrysler. Now that we have been sold to Cerberus, what will the future of retirees be eight years from now, and if I have 20 years and transfer to another DCX facility will I be able to retiree with a pension after working 30 years? Thank you for your time, I know the water is rough right now and you and the International staff are doing the best to try and secure the working class the best future possible. Once again, thank you.

Ron, General: Yes, the water is rough but all of us who are privileged to hold these leadership positions know that it's the workers in the auto plants that have the toughest jobs.

We will continue to look out for future retirees as we have in all previous agreements. If you accumulate 30 or more years of pension credits in more than one Chrysler plant, you will be entitled to a 30-and-out pension.

Attica, Mich.: Will the union continue to protect and support the skilled trades in the upcoming contract talks with the current/future Chrysler management?

Ron, General: Absolutely. Both the union and the company have considerable investment in the skilled trades and it's the union's intention to ensure these skills are utilized.

Detroit: It's been estimated that the U.S. division has nearly $17 billion in health care liabilities in the news. But DaimlerChrysler said the pension plans are significantly over funded at present. Could you please explain these two differently depicted pictures so we can make sense of it? Thanks!

Ron, General: Both statements are in fact correct. While the pension fund is over funded by $2 billion, there is tremendous liability in projected health care costs for retirees. America's health care crisis is out of control and that's why the UAW supports a national, single-payer, comprehensive national health care plan for every man, woman and child. We cannot solve the health care crisis in any one set of negotiations with any one company.

Sterling Heights, Mich.: What opinion do you get from management when discussing keeping skilled-trades work in-house versus contracting it out, and is this something we are going to strive to do in the future?

Ron, General: We have and will continue to demand the protection and use of our skilled trades regardless of management's position.

Mt. Clemens, Mich.: How will the sale of Chrysler affect the IPRs and VTEPs for those who have accepted them? Can they still expect to receive them or have they been put on hold/canceled?

Ron, General: We received several questions similar to this one. The UAW has been assured that the incentive packages as negotiated with DaimlerChrysler for specified locations and up to the number agreed upon will be honored.

Flat Rock, Mich.: What is the status of the "Phoenix Project" as it relates to the Trenton Engine Plant?

Ron, General: The $730-million investment in a new engine plant in Trenton is great news as is the $700 million investment to build an axle plant in Marysville, investments to expand the paint shop at the Sterling Heights plant and retooling Warren truck plant.

Romeo, Mich.: Good afternoon, UAW President Ron Gettelfinger and Vice President General Holiefield. Mr. Holiefield, I understand that we "the membership" are coming into some tough times. But I think that our membership needs to be more educated on the global competition that we are competing against. During the years of 2001-2003 the UAW-DaimlerChrysler had in place the Local PEL Program. When this program was put in place, I thought it was one of the BEST programs to teach our membership about global economy, tariffs and changing times of the world. We need to help educate our members and to inform them of how important it is to get out and vote, and that we as a union can make a change. I know that our highly skilled leadership has the tools and resources to fix this problem. Why are we no longer using this program! Why are we no longer using this program?

Ron, General: The International Union agrees with you about the value of the PEL program in helping educate our members on the political, economic and global factors that affect us and our industry. However, due to financial constraints, we had to suspend the national and local PEL programs. These programs will be reviewed again for the NTC's 2008 fiscal year which will begin in October 2007.

Toledo, Ohio: Are you familiar with the lawsuit Cerebus was involved with in regards to dumping?

Ron, General: Yes. A Cerberus-owned company, NewPage, is a paper manufacturer whose workers are represented by the United Steelworkers. Together, Cerberus and the USW filed a complaint with the U.S. Department of Commerce against unfairly subsidized paper imports from China, Indonesia and South Korea. The initial decision is in favor of the complaint, and while we believe it's under appeal, hopefully, the Commerce Department eventually will be taking measures to stop the dumping of artificially low-priced paper in the U.S. by China.

This lawsuit and finding was a major accomplishment by Cerberus and the USW and it is one that both of them and all of us take a lot of pride in.

Dundee, Mich.: Vice President Holiefield, is it known if Cerberus will continue the Alliance between DCX, Hyundai and Mitsubishi that constitutes the Global Engine Manufacturing Alliance facility in Dundee, Michigan.

Ron, General: The sale will have no affect on GEMA.

Bloomington, Ill.: What do you think is the main reason for the decline in union membership?

Ron, General: There are many reasons that union membership in the private sector has now slipped below 8 percent. We have lost three million manufacturing jobs since Bush took office - mainly due to corporations chasing the lowest wage. This "race to the bottom" is fueled by unfair trade agreements that contain no workers' rights provisions. Another major reason is that current labor laws in the U.S. allow employers to pressure, intimidate and harass workers prior to a NLRB election. That's why the UAW and other unions are urging the Senate to pass the Employee Free Choice Act which already was passed by the House. The Employee Free Choice Act would enable workers to organize through card check recognition and would take the fear out of union organizing.

One thing is for sure. Union membership has not declined because workers don't want a union. Polls consistently show that if workers had a choice, they would join a union.

Livonia, Mich:: With upcoming negotiations and the sale of Chrysler, how will the UAW contend with the perception that UAW workers are overpaid and underworked?

Ron, General: This misperception has been out there for a while. We work very hard to build quality, dependable products. It's a fair bet to say that those who say we're under-worked never spent any time in an auto factory.

We have been negotiating wages with auto companies for 70 years. The wages and benefits we've negotiated have helped to build the middle class. We're proud that we have played a role in raising the living standard for hard-working Americans. Incidentally, wages for all autoworkers in the U.S. follow the wage standards that we negotiate.

Belvidere, Ill.: Most of Chryslers UAW members where offered buyouts. When are they comming to Belvidere now that Chrysler is sold?

Ron, General: The buyouts are based on location need and the safety and efficiency of the plant operations. Based on these qualifiers, Belvidere has not demonstrated a need for IPRs or VTEP programs.

Monroe, Mich.: I have a question concerning the buyouts for Chrysler and seniority. First off, when they announced the buyouts it was by plants affected. Now being from Trenton Engine we have been affected since 2003, probably have at least close to 800-1,000 employees who have been forced to various other plants in the Detroit area and forced to make long commutes to and from work everyday. Now we understand the VTEP went corporatewide but I am wondering why no retirement package offered to non-skilled-trades people at Trenton Engine. They have a very large number of people ready to retire and I'm sure a lot would take those buyouts and would allow some people getting ready to lose their jobs at Warren to return to Trenton as well as people that are on indefinite layoff at Mack Engine who are original from Trenton. Also kinda curious if there is ever going to be something done about seniority. We have so many people with 9-13 years in the corporation that just get bounced around from plant to plant and it seems they never get any respect from the locals they become part of. I know this is small after the big announcement, but with all the buyout hype people just want to know what is gonna happen. Bouncing employees from plant to plant just kills morale.

Ron, General: Buyouts are based on need and the efficiency of the operation. Trenton engine will be examined for a need assessment. You will always have your plant seniority at your home plant. Employees displaced should file a home plant return.

Detroit: Do we get a guarantee in writing like CAW got, that there would not be any more job cuts?

Ron, General: Yes. Yesterday morning we had a meeting with Cerberus and DaimlerChrysler management following which we received a letter stating that there are no new plans for additional headcount reductions, excluding abnormal market conditions and productivity.

Marion, Va.: What role will the General Dynamics Council play in our (Local 2850 w/General Dynamics in Marion) upcoming contract negotiations?

Ron, General: Your facility is not part of the national agreement, so the General Dynamics Council would not play a role in your negotiations. Of course, our entire union works together to achieve the best possible agreements for our membership. As in the past, the General Dynamics Department of the International Union is available to assist your Local Union, if requested by your Regional Director.

Detroit: Hello to both Ron and General. I really appreciate your timing of this online session, given yesterday's Chrysler events. I'll raise a question on many minds today. (It's my concern, too, since I will need Chrysler pension money in retirement some day.) 1) How will the Chrysler pension be handled by the new owners? 2) I wonder how the Big 3 corporations avoided putting the necessary money allotted for pensions into those funds, especially since the union and workers gave up some of their increases over past decades precisely to fund their pensions better. Does the union have a way to hold those past owners and CEOs who walked away with golden parachutes more accountable for pension fund money? Thanks for your help understanding this.

Ron, General: Cerberus will honor our pension agreement. And, as stated earlier, will contribute an additional $200 million.

Auburn Hills, Mich.: Will Mercedes-Benz cars be considered "competitive vehicles"?

Ron, General: There's a lot of tough competition out there. That's why it is so important that we build the best quality possible in the most productive way.

Centerline, Mich.: How does this new ownership affect our products that are made in Germany? For example, the Crossfire and the engine in it? The Sprinter is another subject that's of concern, are we keeping it or what? Will our Customers still get that type of quality and will it still be German made. Quality over all I must admit even though they (The Germans) have no love for us is much better than Pre-Daimler. The styles that we produce today we must continue to produce because our lives and kids depend on it. People of today are not going to buy junk, there is simply too much competition out here.

Ron, General: Both of those products are under contractual distribution obligations, with Karmann Ghia for the Crossfire and with Freightliner for the Sprinter. Upon expiration of those contractual obligations, both products are subject to distribution review.

Regarding the second part of your question, we agree that we must continue to produce stylish vehicles, and there is no tolerance for poor quality. UAW members are dedicated to putting out quality products, and we will continue to advocate with management so that our members have the tools to do the job right.

Monroe, Mich.: We as union men and women are proud to build quality cars and trucks. Will this continue under Cerberus?

Ron, General: Thank you for your positive comments about quality. We agree 100 percent because we recognize that quality is job security and that the customer comes first. Cerberus management has assured us that they feel the same way.

Detroit: Good afternoon Ron and General. With all that is going on in the auto industry right now, with Chrysler being sold, Ford family mulling to sell controlling interest in Ford and the rumor of GM selling its midsize truck line, do you perceive all this as more of the same to come? I've heard all 3 companies will eventually sell out to avoid paying retirees costs.

Ron, General: Certainly none of us have a crystal ball, and much of what appears in the media about our industry is based on speculation as we have all witnessed most recently with the sale of Chrysler. As a union, we will continue to respond to changes in our industry and advocate for the best interests of our members, our retirees and our families.

Belvidere, Ill.: Brother Chairman and Vice Chairman: If I am not mistaken, Cerberus was founded in 1992. Seemingly, they are inexperienced in the actual auto manufacturing industry. Considering the experience that Cerberus does have, in relation to the auto industry, how confident are you that this company will steer the Chrysler brand in the right direction? Do you think their "youth" as a company will be benefical to us or hinder us?

Ron, General: To their credit Cerberus recognizes that they are inexperienced in auto manufacturing. However, they do own companies that produce a wide range of products, including auto parts. They believe that the people in the current management at Chrysler are in a position to move the company forward.

Livonia, Mich.: Some Chrysler employees were offered packages to take place in April, which has been put on hold. Is the company going to honor the packages for the people who have signed their papers to retire?

Ron, General: Efforts are currently underway to resolve the buyout issue. Locations will be allowed to participate on an as-needed basis to protect the efficiency of local plant operations. Notification will be forthcoming in the very near future.

Ron, General: We are making every attempt to communicate with our membership as we go through the transition process. This morning we had a meeting with the local union presidents and chairpersons, which we felt was very beneficial and well received. We recognize there is a lot of apprehension among our members and as the events unfold concerning the sale, we will do our very best to see that our leadership and membership is kept abreast of the issues.

We very much appreciate your participation in today's Q&A. We receive far more questions than we were able to respond to, but by consolidating similar questions, we covered a wide range of issues. Thank you for being a part of our discussion.