UAW chief says U.S. carmakers in need of urgent loan

By Poornima Gupta

DETROIT (Reuters) - U.S. automakers urgently need a federal loan to survive, United Auto Workers President Ron Gettelfinger said on Saturday, but their work force should not be blamed for the industry crisis.

Gettelfinger, in a rare news conference, said General Motors Corp (GM.N), Ford Motor Co(F.N) and Chrysler LLC were a critical part of the economy and needed the aid before President-elect Barack Obama takes office in January.

"We need to get this bridge loan and we need it in this lame duck session," he said, referring to next week's congressional session during which lawmakers will discuss emergency aid for the "big three" car companies.

Gettelfinger said it was unfair to blame UAW workers and retirees for the problems facing U.S. automakers.

"We have made dramatic, dramatic changes," he said, referring to concessions UAW made in its contracts with the automakers.

A health-care trust fund, known as a voluntary employee beneficiary association, is the centrepiece of a cost-cutting contract that the UAW negotiated with the automakers last year.

The trust fund will take effect in 2010 and is expected to cut costs for the automakers by covering health care costs for more than 700,000 UAW-represented workers and retirees.

Detroit automakers have sought emergency assistance to help them survive a steep and worsening drop in sales that they blame on the global credit crisis and slumping economy.