UAW to suspend jobs bank and rework health-care trust

DETROIT (Reuters) - United Auto Workers President Ron Gettelfinger said on Wednesday the union would surrender job security protections and delay payments into a historic retiree health-care trust in concessions intended to help U.S. automakers clinch government aid to survive a sales downturn.

Gettelfinger also said the UAW would consider other changes to contracts reached in 2007 with General Motors, Chrysler and Ford Motor. Changes would be submitted to union members for ratification.

All three Detroit-based automakers said Tuesday that they needed new concessions from the union in restructuring plans submitted to Congress seeking a combined $34 billion (23 billion pounds) of aid.

GM asked Congress for $18 billion of aid, including $4 billion by the end of December to avoid collapse, while Chrysler sought $7 billion by the end of the month as well.

Ford, widely seen as the strongest of the three, said it was seeking a $9 billion line of credit as insurance in part against the collapse of one of its rivals.

Gettelfinger told reporters in a news conference the steps were the "responsible thing to do" and the union was currently engaged in discussions with the automakers modify the contracts, rather than re-open them.

Gettelfinger was speaking at a Detroit hotel after a hastily arranged meeting with union officials who represent workers at the Detroit automakers.

The union and automakers reached agreement last year on contracts that created a Voluntary Employee Beneficiary Association, or VEBA, to take over an estimated $80 billion of retiree health care liabilities starting in 2010.

Gettelfinger said the payment schedules for the 2010 VEBA would be deferred to a later date.