> Democrat's SHAME Socialist UAW Slapdown! Ford Bends Over UAW For a Stuffing!
- From: Patriot Games <Patriot@xxxxxxxxxxx>
- Date: Tue, 10 Mar 2009 08:14:38 -0400
http://www.newsmax.com/newsfront/ford_workers_cuts/2009/03/09/190061.html
Ford Workers Accept Cuts in New Deal
Monday, March 9, 2009
DETROIT -- Unionized workers at Ford Motor Co. have approved contract
changes that include freezing wages and cutting benefits in a move
aimed at helping the automaker remain competitive. The United Auto
Workers said Monday a majority of hourly workers voted in favor of
modifications to the 2007 contract with Ford, eliminating
cost-of-living increases and cash bonuses.
The agreement is expected to be a model for Chrysler LLC and General
Motors Corp., which need to bring their labor costs in line with those
of foreign auto companies' plants in the U.S. as a condition for the
$17.4 billion they have received in federal loans so far. Under terms
of their loan agreements, progress must be made by March 31. The
companies are seeking an additional $21.6 billion in government aid.
Dearborn, Mich.-based Ford, which has not sought government funding as
its rivals have, is the first U.S. automaker to come to an agreement
with the union. The company said that it did not want to be at a
disadvantage should its competitors negotiate lower labor costs with
the UAW.
The UAW pact also allows Ford to use company stock to make payments to
a union-run health care trust, called voluntary employee beneficiary
associations, or VEBAs. Ford can use stock to pay up to 50 percent of
its payments, which would pay retiree health care benefits. Ford owes
$6.3 billion to its VEBA at the end of this year.
Chrysler, however, may not be able to match Ford's guarantee of
issuing additional shares for the trust if Ford's share price drops,
according to a person briefed on Chrysler's negotiations. The person
asked not to be identified because the talks are private.
Chrysler is a privately held company and would have to grant partial
ownership to the union, since there are no public shares of the
company. Chrysler must pay around $9.9 billion to its trust at the end
of the year, while GM has to pay about $20 billion.
The UAW said 59 percent of Ford's production workers and 58 percent of
skilled-trades workers voted for the concessions. At least two local
unions rejected the measures.
"By working together with our UAW partners, we identified solutions
that will help Ford reach competitive parity with foreign-owned auto
manufacturers and that are important to our efforts to operate through
the current economic environment without accessing a bridge loan from
the U.S. government," said UAW President Ron Gettelfinger in a written
statement.
Base wages for UAW workers will remain the same, but the deal limits
supplemental pay that laid-off workers receive while they collect
unemployment benefits. The ratified deal also ends the controversial
jobs bank program that let workers collect most of their pay from the
company when laid-off.
"Now the pressure is on to get a similar agreement at GM and Chrysler.
Time is running out," said Aaron Bragman, an auto analyst with the
consulting company IHS Global Insight in Troy, Mich. "It's ironic that
Ford was able to accomplish it, being the one that doesn't have an
agreement with the government."
Shares of Ford rose 4 cents, or 2.4 percent, to close at $1.74 in the
regular session. After hours, the stock gained 6 cents, or 3.5
percent, to $1.80.
"By working together with our UAW partners, we identified solutions
that will help Ford reach competitive parity with foreign-owned auto
manufacturers and that are important to our efforts to operate through
the current economic environment without accessing a bridge loan from
the U.S. government," said Joe Hinrichs, Ford's group vice president
of global manufacturing and labor affairs, in a written statement.
.
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