UAW, Ford reach tentative agreement
http://www.michronicleonline.com/articlelive/articles/1960/1/UAW-Ford-reach-tentative-agreement/Page1.html
F. Carlton Peeples
By F. Carlton Peeples
Published on 11/7/2007
The United Auto Workers Union announced it had reached a tentative contract with Ford Motor Co. this past weekend, averting a strike and capping a watershed period of labor negotiations in Detroit.
UAW President Ron Gettelfinger addresses labor issues during Ford talks.
The United Auto Workers Union announced it had reached a tentative contract with Ford Motor Co. this past weekend, averting a strike and capping a watershed period of labor negotiations in Detroit.
Labor talks carried into the wee hours of the night avoiding a rather unfavorable strike.
The four-year deal was reached after hours of hard bargaining until 3:20 a.m. Saturday.
Ford, in a statement, said the agreement included a memorandum of understanding to establish an independent health care trust for retirees. Analysts estimate that Ford owes as much as $31 billion in future retiree health care costs.
The goal of the talks was to secure new products and investments as well as enhancing job security.
“And we made progress in all these areas,” assured UAW Vice President Bob King. Ford was the last Detroit automaker to hammer out a deal with the union. General Motors and Chrysler completed contracts within the past two months. GM and Chrysler won sweeping concessions from the union, including changes to health care and retirement benefits and wage cuts for certain workers.
UAW President Ron Gettlefinger released a statement addressing the team’s success.
Stating that his team was proud of each and every negotiator because Ford had been persuaded to invest in products and people while addressing the economic needs of active and retired members.
Though the new pact extends to approximately 56,000 workers, the proposed contract still has to be ratified by UAW Ford local unions.
However, the company is in the midst of a sweeping restructuring, having lost market share every year since 1995 and posting losses of $12.6 billion.
Under the current “Way Forward” restructuring scheme, a return to profitability isn’t likely until 2009 at the earliest.
Tens of thousands of workers have been laid off as the Big Three shuttered dozens of plants amid massive restructuring programs. GM, Chrysler and Ford, which have lost $25 billion since the start of 2005, were so overwhelmed with debt that some analysts predicted bankruptcy.
Meanwhile, the automaker has been auctioning off proponents of its Premium Automotive Group, having sold Aston Martin for $931 million earlier in the year. Its Jaguar and Land Rover name brands are said to be on the floor as well.
The United Auto Workers Union announced it had reached a tentative contract with Ford Motor Co. this past weekend, averting a strike and capping a watershed period of labor negotiations in Detroit. The United Auto Workers Union
UAW Vice President Bob King, who directs the union’s Ford Department, shakes hands with Ford CEO Alan Mulally at the opening of bargaining.
UAW President Ron Gettelfinger addresses labor issues during Ford talks.
The United Auto Workers Union announced it had reached a tentative contract with Ford Motor Co. this past weekend, averting a strike and capping a watershed period of labor negotiations in Detroit.
Labor talks carried into the wee hours of the night avoiding a rather unfavorable strike.
The four-year deal was reached after hours of hard bargaining until 3:20 a.m. Saturday.
Ford, in a statement, said the agreement included a memorandum of understanding to establish an independent health care trust for retirees. Analysts estimate that Ford owes as much as $31 billion in future retiree health care costs.
The goal of the talks was to secure new products and investments as well as enhancing job security.
“And we made progress in all these areas,” assured UAW Vice President Bob King. Ford was the last Detroit automaker to hammer out a deal with the union. General Motors and Chrysler completed contracts within the past two months. GM and Chrysler won sweeping concessions from the union, including changes to health care and retirement benefits and wage cuts for certain workers.
UAW President Ron Gettlefinger released a statement addressing the team’s success.
Stating that his team was proud of each and every negotiator because Ford had been persuaded to invest in products and people while addressing the economic needs of active and retired members.
Though the new pact extends to approximately 56,000 workers, the proposed contract still has to be ratified by UAW Ford local unions.
However, the company is in the midst of a sweeping restructuring, having lost market share every year since 1995 and posting losses of $12.6 billion.
Under the current “Way Forward” restructuring scheme, a return to profitability isn’t likely until 2009 at the earliest.
Tens of thousands of workers have been laid off as the Big Three shuttered dozens of plants amid massive restructuring programs. GM, Chrysler and Ford, which have lost $25 billion since the start of 2005, were so overwhelmed with debt that some analysts predicted bankruptcy.
Meanwhile, the automaker has been auctioning off proponents of its Premium Automotive Group, having sold Aston Martin for $931 million earlier in the year. Its Jaguar and Land Rover name brands are said to be on the floor as well.