Automotive Tentative Agreement Reached by Ford and UAW


by EVANDER KLUM - Date: 2007-11-05 - Word Count: 487 Share This!

Last Saturday, Ford Motor Co. reached a tentative deal with the United Auto Workers Union. Unlike the deals the union reached with General Motors and Chrysler LLC, the UAW did not launch a strike to get their demands from America's second largest automaker.

Approving the deal may not be easy to Ford employees after seeing the layoffs and cutbacks for their GM and Chrysler counterparts.

"If it's a similar agreement negotiated at GM and Chrysler, then it's terrible for the workers and the future," said Gary Walkowicz, a worker and former local union official at a truck plant in Dearborn, where Ford's headquarters is located.

Recently, Chrysler LLC and GM announced that they would eradicate shifts at assembly plants and lay off workers. Last month, GM confirmed that the automaker would cut shifts at three Michigan plants where some of its cars and car parts (like Volvo headlight lens) are made that affects almost 1,700 jobs. Last week, Chrysler LLC made the same announcement of cutting 8,000 - 10,000 hourly jobs.

Both the GM and Chrysler deals guaranteed new jobs and investments in its American plants but lacked pledges on the staffing aspect and allowing the automakers to adjust the staff to meet their vehicle demands. With this scenario, workers at Ford are already apprehensive that Ford will make new job protection vows.

"I think there is a certain amount of skepticism," he said, "The other contracts had this supposed job security, which of course wasn't there, and as soon as the contract is signed they turn around and announce major layoffs."

If most of the hourly workers included in the 54,000 UAW represented Ford workers will approve the contract, it will mark the end of the four months negotiations and the historic third contract of Ford. However, the new contract will lower down the labor cost and will change how retiree benefits are to be handled.

The new contract between Ford and the UAW was reached last Saturday around 3:20 am. Before tentative agreements were reached by Chrysler and GM, the UAW held short strikes against the automakers but no strike threats were made to Ford.

According to one source familiar with the negotiations, Ford agreed not to continue their plans of closing some of its U.S. plants and make some major investments to continue those plant's operations. For Ford's advantage, the deal allows the automaker to pay new hires with lower wages, same as that of GM and Chrysler. Ford is also required to fund the health care benefits of the retirees with $22 billion via a union-controlled trust.

"Though we will not discuss the specifics of the tentative agreement until after it becomes final, we believe it is fair to our employees and retirees, and paves the way for Ford to increase its competitiveness in the United States," Joe Laymon, Ford's group vice president for human resources and labor affairs, said in a statement.


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