Five Ford UAW plants back contract; vote continues

[Jack]

DETROIT (Reuters) -- Workers at five Ford Motor Co. U.S. plants represented by the UAW have backed a contract aimed at bringing the automaker's labor costs in line with rivals General Motors Co. and Chrysler.



Workers at Ford's Michigan and Wayne assembly plants near Detroit voted to ratify the contract, said a source familiar with the process who was not authorized to speak because the ratification has not been completed.

At three Cleveland-area plants, workers backed the proposed contract changes 61 percent to 39 percent, UAW Local President Mike Gammella said. The local represents about 1,300 workers at two engine plants and a stamping plant.

The UAW and Ford announced a tentative agreement Oct. 13 on changes to its 2007 contract that covers about 41,000 workers.

"Initially there was a lot of pushback, but once people heard the details they supported it," Gammella said of the proposed changes. "They weren't doing cartwheels over it, but they understood."

The turnout was more than 80 percent, Gammella said.

Other locals have scheduled votes through next week on the tentative agreement the UAW and Ford announced Oct. 13. Approval requires a majority of the votes cast by workers.

The proposed changes include a no-strike clause, wage freeze for entry-level workers and other concessions. Ford also made some production commitments and is offering a one-time $1,000 bonus next year if the automaker meets quality targets.

Ford's UAW-represented workers agreed to concessions earlier in 2009 the automaker said would save it about $500 million per year.

However, Ford said agreements GM and Chrysler made with the UAW around their government-supported reorganizations would put the company at a disadvantage over the long term and sought more cuts to bring costs in line with those rivals


http://www.autonews.com/article/20091023/ANA02/310239926/1200

[Jack]

Cleveland UAW unit ratifies Ford contract

Union members of UAW Local 1250 who work at an engine complex near Cleveland on Thursday approved changes to a labor contract with Ford Motor Co. even thought the agreement would freeze entry-level wages until 2015.



 

About 61% of the 1,265 workers who voted were in favor of the contract while 39% were opposed, said Mark Payne, first vice president of the local.


The contract also was ratified at UAW Local 900, which represents workers Ford’s Wayne Assembly Plant, according to one official who asked not to be named.



“We are in full support of the international union,” said Mike Gammella, president of the local.


Located in Brook Park, Ohio, the plant began building Ford’s new six-cylinder Ecoboost engine last spring. Under a tentative announced last week between Ford and UAW, the Dearborn automaker promised to provide the plant with an additional engine for small engine models.


That product commitment led to additional support for the contract changes, Payne said, even while opposition to the changes has surfaced among some UAW members.


“I think this ratification of this will prove itself to help out the Cleveland site,” Payne said. “It is going to give us commitment for new, lower displacement engines.”


In addition to the wage freeze, the proposed contract would establish a requirement for binding arbitration for wage and benefit disagreements at the end of the current contract and a consolidation of skilled-trades classifications.


Ford, in return, is promising several new products for its U.S. plants, to create new jobs and a onetime $1,000 bonus for workers.


To become official, the agreement must be ratified by Ford’s 41,000 UAW members in voting that is schedule to take place through the end of the month.


http://www.freep.com/article/20091023/BUSINESS01/91023018/1002/BUSINESS/Cleveland-UAW-unit-ratifies-Ford-contract