Autoblog

REPORT: Ford offering all 41,000 UAW workers buyout packages

Jeremy Korzeniewski — Mon, 21 Dec 2009 18:29:00 EST

Filed under: Hirings/Firings/Layoffs, Ford, Earnings/Financials, UAW/Unions

According to Ford spokesman Mark Truby, "Despite a strengthening in our business, we still have a surplus in employees." Union employees to be specific. As such, Ford has just announced plans to reduce its unionized workforce by offering a buyout package to all 41,000 UAW members currently employed by the automaker.

Reuters reports that Ford workers with at least one year of experience can take a payout of $50,000 plus a new car voucher worth $25,000 or an additional cash payment of $20,000. Retirement-age workers can opt to take their pensions plus the $25,000 new vehicle voucher or the $20,000 payment. Finally, skilled-trade workers that are eligible for retirement can opt for a $40,000 payout plus their pensions.

Ford says these efforts are necessary to remain competitive with foreign rivals and fellow American automakers General Motors and Chrysler, both of which recently went through government-sponsored bankruptcy proceedings and extensive reorganization. Earlier this year, Ford's UAW workers voted down a revised contract that would have essentially granted Ford the same measures that unionized auto workers had earlier extended to Chrysler and General Motors.

Workers who accept the buyout packages would leave sometime during the month of February, 2010. Any new workers hired as replacements will start at $14 per hour under the latest UAW contract, which is half of the current average wage of UAW employees being offered the buyouts.

[Source: Reuters | Image: Bill Pugliano/Getty]

REPORT: Ford offering all 41,000 UAW workers buyout packages originally appeared on Autoblog on Mon, 21 Dec 2009 18:29:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #151: With Eddie Alterman of Car and Driver

Dan Roth — Tue, 03 Nov 2009 15:50:00 EST

Filed under: Podcasts, SEMA Show, Etc., Plants/Manufacturing, Audi, BMW, Dodge, Ford, Lincoln, Subaru, Earnings/Financials, UAW/Unions, Celebrities

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Abuelsamid, Lieberman, Roth and Shunk. Sounds like a law firm, but it's this week's podcast crew. Car and Driver editor-in-chief Eddie Alterman bravely wades into the pool and joins us for Episode #151 of the Autoblog Podcast, as well.

We spend a goodly amount of time going over what's in all five garages this week, before picking up actual topics. Once into news, we move through the Honda Accord Crosstour's pricing and impending launch, Ford's profitable quarter and union dealings, Edmunds' dust-up with the White House, and wrap with what might be cool at the crazy automotive cavalcade that is SEMA. It's an hour and twenty minutes of rollicking good times, so let us know what you think by dropping us an email at Podcast at Autoblog dot com, reviewing the show in iTunes, filling out our survey, or even leaving us a voicemail on our Google Voice line 734-288-8POD (734-288-8763). Thanks for listening, we'll see you next week!

Continue reading Autoblog Podcast #151: With Eddie Alterman of Car and Driver

Autoblog Podcast #151: With Eddie Alterman of Car and Driver originally appeared on Autoblog on Tue, 03 Nov 2009 15:50:00 EST. Please see our terms for use of feeds.

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REPORT: Three Ford plants vote down new contract with UAW

Dan Roth — Tue, 27 Oct 2009 11:39:00 EST

Filed under: Plants/Manufacturing, Ford, UAW/Unions

Pattern bargaining is how things tend to be done in Detroit, a strategy which ensures that one automaker doesn't tend to get a plum deal at the expense of the other car builders in town. General Motors and Chrysler negotiated pretty hard with the United Auto Workers as part of the bailouts, and Ford's now in the process of securing new agreements with its labor force. While the Blue Oval didn't need government money to stay afloat (well, aside from those low interest technology loans, anyway), it wants parity with its rivals workforce deals.

Several Ford plants have approved the new deal, in which Dearborn has asked for the same concessions that its rivals have already secured. Most recently, however, three Ford facilities have voted down the plan to hold firm entry-level pay and benefits, limits on the union's right to strike over wages and benefits, and consolidates skilled trades. Those opposed to Ford's new agreement argue that the true spirit of pattern agreements would lift Chrysler and GM up to where Ford's current agreements are. Kansas City's F-150 plant slapped down the proposed contract by 92%, but Ford will await the final tally before conceding defeat - or celebrating successful negotiations. Contentious labor dealings are certainly not something Ford wants to deal with at this precarious moment. Even while business has been trending up lately, there's still a long way to go, and if labor puts a skip in the get along, it could be a nail in the coffin of a successful recovery.

[Source: Automotive News - sub req. | Image: Bill Pugliano/Getty]

REPORT: Three Ford plants vote down new contract with UAW originally appeared on Autoblog on Tue, 27 Oct 2009 11:39:00 EST. Please see our terms for use of feeds.

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REPORT: Ford and UAW contract changes begin to leak out

Chris Shunk — Fri, 16 Oct 2009 16:58:00 EST

Filed under: Ford, UAW/Unions

Even before General Motors and Chrysler entered bankruptcy, the two automakers were wheeling and dealing with the United Auto Workers, reworking their contracts signed in 2007. Since Ford wasn't partaking in the billions of dollars handed to the other two automakers by the federal government, the Dearborn, MI-based automaker was seemingly left out in the cold. Those contract changes helped GM and Chrysler emerge as stronger companies, but Ford was left hanging.

Ford and the UAW have finally gotten together to level the all-important labor playing field, as the two agreed to a tentative contract on Monday. While the terms of the deal are always sealed until the rank and file vote on them, they are also seemingly always leaked before ratification takes place. Automotive News is reporting on several of the concessions made by both the UAW and Ford, and if the updates to the 2007 contract hold they should go a long way toward giving Ford parity with its cross-town rivals.

The UAW has reportedly agreed to freeze the wages of entry level workers making $14 per hour until the agreement ends in 2011. The UAW also lifted a cap that limits the amount of low-cost workers in the plants until 2015, when those jobs are limited to 20% of the workforce. Any workers above 20% will be given traditional union wages in order of seniority. The union will also limit the amount of jobs that are classified as a skilled trade and submit the 2007 contract to binding arbitration when the contract expires in 2011. The UAW has also reportedly agreed to not strike over wage and benefit-related issues, a big win for Ford that virtually guarantees that production stoppages won't be labor-related.

The Blue Oval also had to do some bending of its own. If its 41,000 UAW workers approve the contract changes, every worker will receive a $1,000 bonus for their troubles. Perhaps even more importantly, Ford made production guarantees of facilities in Ohio, Kansas, Michigan, Illinois and Kentucky. Ford is also reportedly guaranteeing to build hybrid batteries in its Rawsonville, MI facility, adding a new vehicle to its Michigan Assembly plant and adding a vehicle at Louisville Assembly that could be exported to other markets. Ford has also promised to build the Transit Connect in the U.S. if Ford decides to move production to North America to supplement production in Turkey. Ratification of the contract is expected later today or early next week, so we'll soon find out if these contract changes are the real deal.

[Source: Automotive News, sub. req'd | Photo by Scott Olson/Getty]

REPORT: Ford and UAW contract changes begin to leak out originally appeared on Autoblog on Fri, 16 Oct 2009 16:58:00 EST. Please see our terms for use of feeds.

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Ford and UAW reach tentative agreement on contract changes

John Neff — Tue, 13 Oct 2009 16:31:00 EST

Filed under: Ford, UAW/Unions

In the interest of remaining competitive with transplants (non-union automotive plants in the U.S. owned and operated by import automakers), Ford and the United Auto Workers union have tentatively agreed on modifications to their current contract that affects some 41,000 hour workers. The exact modifications won't be officially revealed until the UAW and its members have a chance to ratify the contract changes later this week, but Automotive News is reporting that they include additional product commitments by Ford for UAW plants in the U.S., as well as bringing some parts work back in-house. Also reported are reported are concessions by the UAW for more work rule changes and a reduction in the number of skilled-trades classifications, both aimed at increasing productivity and saving money.

Ford is in a tough spot since its cross-town rivals, General Motors and Chrysler LLC, were able to renegotiate their contracts with the UAW under the umbrella of Chapter 11 bankruptcy this past summer. Ford, having avoided accepting any loans from the government and filing Ch. 11, has enjoyed better-than-expected sales the past few months, and so asking its hourly work force for concessions without the pressure of reorganization and while it's doing relatively well is a tough case to make. Nevertheless, it appears that UAW leaders were willing to see Ford's side of things. We'll let you know later this week when the official contract changes are revealed, so stay tuned.

[Source: Ford, Automotive News - sub. req'd | Photo by Bill Pugliano/Getty]

Continue reading Ford and UAW reach tentative agreement on contract changes

Ford and UAW reach tentative agreement on contract changes originally appeared on Autoblog on Tue, 13 Oct 2009 16:31:00 EST. Please see our terms for use of feeds.

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Quick and painless: Ford-UAW contract ratified by rank-and-file

John Neff — Wed, 14 Nov 2007 12:05:00 EST

Filed under: Ford, UAW/Unions

UPDATE: Automotive News (sub. req'd) reports that the Ford-UAW labor contract passed by a margin of nearly 4-to-1, compared to a 2-to-1 margin for GM's contract and only 56% voting in favor of Chrysler's contract.

Ford has just announced that its union-represented employees have ratified the new four-year labor contract that was reached back on Nov. 3 with the UAW. Unlike new labor contracts with General Motors and Chrysler that didn't attract overwhelming support from the UAW's rank-and-file membership, the Ford contract appears to have passed the popular vote with ease. The contract includes the increasingly popular VEBA account to take over for retiree health benefits, though Ford is contributing only 40% of the cash that will fund the account, compared to 54% for GM and 59% for Chrysler. Also like the previous two contracts, a new two-tier wage system will be employed, though only until 20% of Ford's UAW work force occupies the lower wage tier. Finally, Ford will take the money it saved on the VEBA account and reinvest it back into various manufacturing facilities to make them more flexible. Despite that, both the Wayne Stamping and Assembly Plant and the Ohio Assembly Plant are being shuttered in addition to those already announced, while the automaker plans to make new product commitments to its remaining plants in the near future.

We're not sure whether UAW workers for Ford accepted the contract so readily because of its more favorable terms or the apparent futility in opposing the UAW leadership on things like labor contracts. There was a considerable amount of rank-and-file opposition to Chrysler's new labor contract, but at the end of the day it too won the popular vote thanks to the support of union leaders.

[Source: Ford]

Continue reading Quick and painless: Ford-UAW contract ratified by rank-and-file

Quick and painless: Ford-UAW contract ratified by rank-and-file originally appeared on Autoblog on Wed, 14 Nov 2007 12:05:00 EST. Please see our terms for use of feeds.

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BREAKING: UAW and Ford reach tentative agreement

John Neff — Sat, 03 Nov 2007 11:21:00 EST

Filed under: Hirings/Firings/Layoffs, Ford, UAW/Unions

You know what they say: third time's a charm. After the United Auto Workers union was forced to strike against both General Motors and Chrysler LLC., it somehow found a way to come to terms with Ford Motor Co. after two marathon days of negotiations this past week. Ford's press release contains no details about the tentative four-year contract itself, except to say that it applies to all 54,000 UAW workers who have their checks signed by Ford.

The contract will remain tentative until those 54,000 rank and file workers vote on it. All it needs is a majority vote from Ford's hourly workforce, but as we learned with the UAW-Chrysler contract that was almost defeated in a popular vote, that's easier said than done. When the details of this contract emerge, it will become more apparent whether it favors the union or the automaker, and thus whether or not the average worker will be likely vote for it.

Check out the official statement from Ford after the jump.

[Source: Ford]

Continue reading BREAKING: UAW and Ford reach tentative agreement

BREAKING: UAW and Ford reach tentative agreement originally appeared on Autoblog on Sat, 03 Nov 2007 11:21:00 EST. Please see our terms for use of feeds.

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