Filed under: Ford, UAW/Unions
Details emerge on Ford/UAW contract
Ford stands as the last domestic automaker in the process of negotiating its labor contract with the UAW, and details of the new contract have begun to hit the web. The Detroit News has an in-depth article on what's gone down thus far, but for those of us with attention spans akin to meth-addled Chihuahuas, they put together a listing of the major elements of the new contract, while comparing and contrasting what Ford's cross-town rivals have already agreed to.On the job side of the equation, two-tier wages will be enacted for new employees until 20-percent of the work force lies in the lower wage bracket. Employees currently in the "Job Bank" have one year to either pick a new position or quit the company, compared to GM's "take the first, or take the second, then you're done" setup, or Chryslers two-year term in the Bank. Another health care VEBA is planned for Ford retirees, with a 40-percent cash infusion, compared to GM's 54-percent and Chrysler's 59-percent.
Ford will shutter two additional manufacturing centers – the Wayne Stamping and Assembly Plant and the Ohio Assembly Plant – and won't close any other plants aside from those already announced. The money they didn't contribute to the VEBA will be invested into plants, specifically to make these centers more flexible so they can manufacture any vehicle in the Blue Oval's arsenal. Ford will also make product commitments to the Wayne plant and a few other facilities.
You can read the entire summary by click the "Read" link below.
[Source: Detroit News]
Reader Comments (Page 1 of 1)
James 9:44AM (11/05/2007)
"Ford has removed the Wayne Stamping and Assembly Plant and the Ohio Assembly Plant in Avon Lake, Ohio, from its list of factories targeted for closure."
Your short notes make it appear these two are closing?
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compy386 9:48AM (11/05/2007)
This could be bad news for the CAW. If Ford doesn't close any more assembly plants beyond what was announced in the US then Ford will have to do it in Canada. Also VEBA eliminates any health care benefits that Ford had in Canada. With the Canadian currency appreciating, I would have to guess that the plants are not very competitive. Also I'm not sure adding flexable plant capacity helps Ford since most of these plants don't produce anything beyond their currently family of products (e.g. Chicago produces Taurus and Taurus X). If one of the vehicles flops, it's not very likely that the other will succeed.
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cowbell 9:49AM (11/05/2007)
Does anyone else think it's a great sign that part of the labor agreement involves investing into the company's capabilities?
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Robert 12:12PM (11/05/2007)
This is a stellar contract if ratified. The most significant part was Gettelfinger's demand of investment in return for less up front cash in the VEBA. If Ford puts that extra $2 billion into equipment like they have at some of their more automated plants, each worker becomes more productive thus lowering costs per vehicle in the longer run.
The CAW should be worried a little. St. Thomas in Canada is still slated to close (and most likely will in 2010). That leaves Ford with one question mark. Anyone know what it is? It's not OAP, and I don't think Ford has any other factories left north of the border, so it's probably something in the U.S.
On the issue of flex plants, not all product is necessarily on the same platform and being on the same platform doesn't doom it to failure. The Flex and Edge will both be built at OAP in Canada. One is on D3 and the other is on CD3. Even if they are on related platforms, the failure of one doesn't mean the failure of all. The Taurus is D3 and the new MKS is D3-2 (D4?). Both will be built in Chicago but share no sheetmetal or really any underpinnings. If the MKS fails, it won't be because the Taurus is a tepid seller (although the Taurus X seems to be hitting its targets).
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elprogramer 5:03PM (11/05/2007)
I should point out that the Jobs Bank doesn't apply to layoffs due to a reduction of volume; it applies to changes in the layout of production (ie: more efficiency) and was an idea by General Motors, not the UAW.
In other words, all those people in Lansing and Pole Town, they're on the street in the unemployment line. I'm looking to go next; they're cutting production of the 3800 (since the Lucerne is too). Yay.
Someone tell me how spoiled I am.
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bumblebee 7:12AM (11/10/2007)
It is a shame that the UAW has to encourage Ford to invest in their plants. How do they plan to enforce this? When is Ford really going to commit to quality? When is top mgmt going to start sacrificing on their health benifits & on their pay compensation? It's time to stop asking the labor force to sacrifice for the good of the company & not top mgmt
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