IndustryWeek : Union Rejects Ford Concessions Deal
  • IW Home
  • Leadership & Strategy
  • Operations
  • Economics & Public Policy
  • Technology & Innovation
  • Rankings
Home : Economy & Public Policy : Labor : Union Rejects Ford Concessions Deal

Union Rejects Ford Concessions Deal

The tentative agreement would have granted Ford key work rule changes, a six-year wage freeze for new hires and a no-strike clause through 2015.

By . Agence France-Presse

Nov. 2, 2009

Union members have rejected a deal to grant Ford Motor Co. concessions awarded to rivals General Motors and Chrysler, the United Auto Workers said on Nov. 2. The deal was rejected by 70% of the membership in production and 75% of skilled trades workers.

The UAW, which had endorsed the deal, said it was "respectful" of the decision of its membership and "will not be returning to the bargaining table."

The tentative agreement would have granted Ford key work rule changes, a six-year wage freeze for new hires and a no-strike clause through 2015.

The union has typically engaged in "pattern" bargaining so none of the Detroit Three was at a competitive advantage, but members balked at granting the concessions to Ford which did not resort to government aid and posted a surprise one billion dollar third quarter profit on Nov. 2.

The tentative deal also included a sweetener of a $1,000 bonus for each of the 41,000 workers and product commitments which the UAW said "insured long-term job security for Ford workers."

Given that the Canadian Auto Workers voted to ratify similar contract changes, it is possible that Ford may shift some production out of the U.S. as a result of the vote.

The UAW said it will "continue to work with Ford on a daily basis in an effort to keep new products coming into our plants."

"We will also continue to work with Ford to insure they maintain the highest ratings in quality and productivity and insure that they remain competitive," UAW president Ron Gettelfinger said.

Displaying 1 of 2
Page:<< Back ยท Next >>
View article on one page
Spotlight

The Inaugural Class

In some way, these 10 outstanding people likely have touched all our lives.

Read Full Story
Click here to download
Poll
Will you change your employee health coverage if a Health Care bill passes?



Comment in the IW Forums.