Ford and UAW reached tentative contract

At 3:20 am last Saturday, the United Auto Workers union reached a tentative agreement with Ford Motor Co. after two days straight of bargaining. Compared to the UAW`s deals with General Motors and Chrysler LLC, there was no strike or even a threat to one.

“Our bargaining committee came through for our active and retired members” UAW President Ron Gettelfinger said in a prepared statement. “Our team is proud of each and every negotiator because they have encouraged Ford to invest in product and people while addressing the economic needs of our active and retired members.”

Specific details have not been released by the two parties involved in the bargaining. Comments were sought from Ford negotiators, however, none was given.

“We face enormous challenges - and we also have enormous potential” UAW Vice President Bob King, who directs the union’s National Ford Department, said in the statement.

“Our goals for this contract were to win new product and investment, to enhance job security and protect seniority - and we made progress in all these areas.”

The new contract will cover the almost 54,000 UAW represented Ford workers. In a statement, Ford Motor Co. (makes Volvo engine mount) confirmed that they will be funding a union controlled trust for the retiree health care benefits known as the Voluntary Employees Beneficiary Association (VEBA) similar to the GM and Chrysler provision. According to some UAW sources the fund is estimated to be $22 billion. However, the VEBA will still be under approval of the U.S. Securities and Exchange Commission.

New hires are also subjected to lower wages in exchange of product commitments from Ford to its U.S. plants.

According to the UAW, specifics of the agreement will be provided to UAW members working at Ford facilities. The contract will undergo ratification which typically runs for a couple of weeks.

“Though we will not discuss the specifics of the tentative agreement until after it becomes final, we believe it is fair to our employees and retirees, and paves the way for Ford to increase its competitiveness in the United States” according to a Ford statement released last Saturday morning attributed to Joe Laymon, Ford’s group vice president of human resources and labor affairs.