Ford will take a one-time expense of $600 million in the fourth quarter to pay for the upfront costs of its new UAW contract. However, the deal offers the automaker some advantages over the next four years.
The newly proposed contract between the UAW and FCA would give wage parity between first- and second-tier workers after eight years of employment. Gone from the proposed contract is a health-care cooperative between employees of all three major American automakers.
The UAW's pending deal with FCA US retains the two-tier worker system but gives raises to them both. The agreement also creates a healthcare co-op to fight rising costs.
The UAW is preparing its negotiation position with carmakers later this year. Its primary objective will be the elimination of the two-tier wage system created in 2007 to help the automakers through bankruptcy, but that position "is a non-starter" for the car companies.
General Motors manufacturing facilities around the country have begun ratifying the tentative labor agreement between the automaker and the United Auto Workers. Both Flint and Lansing were the first plants to vote for the new deal over the weekend, though others are beginning to fall in line, including the St. Louis-area plant in Wentzville, which has been earmarked for a $380M investment to help build a new mid-size pickup, along with Spring Hill, Tennessee, former home of the now defunct Satur
After the miracle Ford CEO Alan Mulally and his One Ford team pulled off in turning around the company in the face of an industry meltdown, it might seem hard to argue about the amount of money the CEO makes. But that's exactly what United Auto Workers President Bob King did in front of reporters at an event in Detroit, calling Mulally's $54.5 million stock payment "morally wrong."
One three-month period of profitability after years losses may be reason to cheer, but it hardly justifies going back to the old ways of doing things, right? Nonetheless, according to The Detroit News, AFL-CIO President Richard Trumka this week called on General Motors, Ford and Chrysler to give back the concessions that the UAW made in the last couple of years as they companies went through bankruptcy. Trumka was speaking at the UAW's constitutional convention in Detroit.
Ron Gettelfinger, the United Auto Workers' (UAW) president during the recent tumult, is moving on from his post, and has thrown his support behind Bob King. King is currently a vice president in the union and manages the relationship with Ford.
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), i
Ford is arguably the domestic maker in the most trouble, and it appears the UAW has allowed more concessions for Ford than for either of the other two domestic car car makers in its contract negotiations. With combined savings from the end of health care obligations, revised rules on hiring, salaries, and classifications, Ford will be able to put $2 billion more in its coffers every year.
It turns out the 24-page document we showed you last week was not the full UAW-GM contract the two parties negotiated after an historic 40-hour strike, but rather a highlights booklet to make the nuts and bolts of the deal easier for the union's rank and file to digest. The real contract, called the "white book" by union members, has also now hit the web. We found it hosted at Factoryrat.com, all 82 pages of legalese. Some mainstream outlets found the "white book" too and began sifting through i
For any of you with more than a passing interest in what actually settled the strike, the full contract between GM and the UAW has been posted. It's 24 pages of minutiae, from relocation allowances to health insurance and, of course, pay. It speaks for itself -- and for the UAW and GM. Some will find things to criticize, others to defend, the union. Either way, let the commenting begin.
UPDATE: According to Automotive News, the deal also stipulates GM agrees to new-vehicle programs at 16 U.S. plants.