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LIVONIA, Mich.–As negotiations for General Motors Corp. to acquire Chrysler LLC appear to be gaining momentum, United Auto Workers President Ron Gettelfinger said yesterday he is very concerned that the deal may happen, with many workers losing their jobs.

Gettelfinger said he knows the companies have been holding talks for a long time and there probably are steps the union could take to try to halt any merger. But that would be speculation at this point, he said.

"Let’s say we’re concerned that it’s coming because of the impact that it would have on our workforce," Gettelfinger said at a union hall rally for U.S. Democratic presidential candidate Barack Obama.

Neither Chrysler nor GM has contacted the union about the acquisition talks, he said, but he cited reports about the merger that say GM would look to take costs out if it were to acquire Chrysler.

"That’s going to mean a reduction of workers," he said. "I don’t know just exactly how that would work out, but yes, we are very concerned about that pay day advance." Chrysler has 66,409 employees, most in North America. The UAW represents about 33,000.

Gettelfinger said the union also is concerned about further job cuts at GM as it tries to deal with slumping sales and the credit crisis. The automaker has announced more than 4,300 layoffs at its factories since Monday, and industry analysts have said more may be on the way.

Chrysler CEO Bob Nardelli, in a TV interview on Thursday, would not comment on talks with GM, but said economic troubles have made the industry ripe for consolidation, "where you can get synergies of productivity that will allow you to be more competitive, not only here in the U.S., but on a global basis."

GM has discussed a merger or acquisition with Cerberus Capital Management LP, the private equity firm that owns 80.1 per cent of Chrysler, according to a source.

Associated Press

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