UAW Is Unwilling to Reopen GM Contract Over Healthcare

United Auto Workers officials indicated Thursday that they would be unwilling to reopen the union’s 2-year-old labor contract with General Motors Corp. to negotiate lower healthcare costs. Already battered shares of the world’s largest automaker tumbled to lows Thursday not seen in more than a decade.

UAW President Ron Gettelfinger said after an annual meeting between GM and the union that the automaker hadn’t asked the union to reopen the contract. He said the UAW believed it could work with GM, which recently slashed its earnings forecasts, to lower costs within the current contract.

“We’re very comfortable with where we’re at,” Gettelfinger said. “As long as we work within the framework of our agreement, we’ll make joint efforts to lower costs wherever it’s possible, whether it pertains to healthcare or whether it pertains to other measures. But we’re going to stay within the confines of the agreement.”

The comments came even as GM shares fell to their lowest level in more than a decade, a sign that investors lack confidence in the automaker’s ability to face its healthcare obligations and other problems. GM shares lost $1.67, or 5.9%, to $26.66 in trading Thursday on the New York Stock Exchange. That was their lowest level since 1991.

GM Chairman and Chief Executive Rick Wagoner attended the meeting but didn’t speak to reporters. John Buttermore, GM’s vice president for North American labor relations, wouldn’t comment on the possibility of reopening the contract but said the amount GM could save by working within the contract was limited.

“Within the agreement, there’s a lot we can do, but there’s also a lot we need,” Buttermore said. “We’re looking at all options.”

Buttermore added that GM would continue meeting weekly with the union to discuss various options. “There’s a very strong sense of urgency for us to be able to communicate and put together a plan we need for the business,” he said.

The contract expires in 2007.