Ford-UAW Tentative Agreement Waiting for Ratification

Could this be a win-win? The new tentative agreement between Ford Motor Company and the United Auto Workers is seen asessential to improving the company’s long-term outlook, while UAW president Ron Gettelfinger believes it “isn’t a concessionary agreement.”

“This agreement, when you look at it, has more positives for our membership than it has negatives,” said Gettelfinger.

The proposed agreement brings Ford’s costs for workers down through three key changes to the previous agreement: wage freezes for entry-level workers, a reduction in the number of skilled-trade classifications, and an agreement to enter into binding arbitration on wage and benefit issues. The key changes are very similar to the changes seen in Chrysler and GM’s revised UAW contracts.

Since the domestic labor costs will theoretically decrease, Ford agreed to build new vehicles and parts at American factories in an effort to createmore than2000 jobs — one of the highlights for the UAW. Another perk for the UAW in the agreement is the payment of $1000 bonuses, a first since March 2008.

“Instead of talking about job security, we talked about product commitments, and the right to enforce those product commitments,” Gettelfinger said.

Even with the limited concessions and the promise of new products and jobs, some UAW leaders believe the agreement will be hard to pass, seeing as Ford’s business conditions continue to improve, and the UAW already gave the automaker nearly $500 million in concessions in March.But as Gettelfinger notes, the company still carries a considerable amount of debt.

Source: Detroit Free Press