Ford Motor presses for UAW modifications

[Jack]

But job cuts likely won't be on table

Ford Motor Co. is pushing the UAW for additional modifications to its labor contract, but one item that few are expecting is additional job cuts.


The Dearborn automaker has aggressively cut hourly and salaried jobs over the past four years, but the pace has slowed dramatically this year and there are no longer any major job reduction programs in the works.



Ford reduced its total North American workforce by 4.9% over the first six months of this year. That's far less than in 2008, when Ford reduced its North American workforce by 16% or in 2007, when Ford reduced its North American workforce by 27%.



Only 1,000 hourly workers accepted the buyout offer that expired in June -- largely because many workers say they believe in Ford's future and there are few other jobs available as a result of the recession.



Since the end of 2006, Ford's total hourly workforce declined by 44%, or from 90,000 to 50,300. But only 2,500 of those reductions occurred over the first half of this year.



The lower numbers are partly due to Ford's success.



Ford, which has gained U.S. market share, posted a profit of $2.3 billion in the second quarter, albeit mostly because of onetime accounting gains. The automaker is now in the black, earning $834 million through the first half.



While job cuts have slowed, Joe Hinrichs, group vice president of global manufacturing and labor affairs, said the company is committed to continuing to improve its efficiency, and he credited the union with making many adjustments to make Ford more competitive.



"We've had a remarkable record over the last several years of working with the UAW to improve the competitiveness of our business," Hinrichs said.



But now, Ford is seeking more changes.



In March, Ford was the first of the Detroit Three to reach an agreement with the UAW to modify its three-year labor agreement.



But since then, General Motors Co. and Chrysler Group LLC reached UAW agreements that went farther than Ford's agreement to make those automakers, which went through bankruptcy earlier this year, more competitive.



Hinrichs declined to say what Ford is hoping to gain, but UAW sources aren't expecting major changes unless Ford offers its own enticing modifications.



Jeff Terry, a member of the UAW's Ford National Negotiating Committee, said there is substantial resistance to any additional modifications.



"At this time the membership is not favorable to any further modifications, nor is the leadership," said Terry, also president of UAW Local 228.



That's especially true as Ford continues to build momentum in the market.



Ford's factories are planning to build more cars and trucks in the second half of this year. That's partly because of demand stimulated by the government's cash-for-clunkers program but also because Ford says it believes the economy will see a rebound.

http://www.freep.com/article/20090820/BUSINESS01/908200439/1002/BUSINESS/Ford-Motor-presses-for-UAW-modifications

[Jack]

Some UAW members oppose Ford concessions.


UAW dissidents are organizing to fight what they expect will be a new round of contract concessions at Ford Motor Co.



Ford hourly workers, who made concessions just in March, should not give more to bring their deal in line with more stringent givebacks negotiated afterward by General Motors and Chrysler, said Gary Walkowicz, who is a UAW Local 600 committeeman at Ford's Dearborn Truck Plant.

This month, UAW Local 900 President Anderson Robinson Jr. said Ford negotiators would meet Aug. 25 with UAW International representatives to discuss additional possible contract changes.

Robinson told Automotive News that workers were resistant to more concessions given Ford's market share gains and profitability in the second quarter. He said the union wants more UAW jobs created by supplier work being moved in-house for consideration of contract changes.

Ford spokeswoman Marcey Evans confirmed that the company and the union are meeting this week. "We're talking to them about ways we can remain competitive," Evans said.

She wouldn't comment on whether Ford is seeking the same concessions the UAW gave to GM and Chrysler in bankruptcy. But when asked about the concessions gained by crosstown rivals, Ford CEO Alan Mulally has said that Ford won't be disadvantaged.

Walkowicz, 59, says Ford workers have given enough already. "Concessions just lead to more concessions," he said.

The biggest difference between the Ford deal and those negotiated by the UAW at GM and Chrysler is a no-strike clause for the 2011 contract talks, Walkowicz said. That clause requires items that can't be resolved through negotiations to be settled by an arbitrator.

"You give up the right to strike and you lose all your bargaining power," Walkowicz said. "That would be insane."

GM, in particular, also negotiated to pay much less in cash and more in stock to settle its retiree health care obligations than Ford.

GM, which sought bankruptcy protection June 1 and emerged July 10, prompted the UAW to take just $2.5 billion in cash to fund a retiree health care trust known as a Voluntary Employee Beneficiary Association. GM's total obligation to the VEBA was $20 billion.

By contrast, Ford is paying $6.6 billion in cash for a total $13.2 billion obligation.

Walkowicz says he is networking with workers in other Ford plants to resist new concessions. The local union representative has a letter on the dissident Web site, soldiersofsolidarity.com, asking workers to organize against more givebacks.

The Dearborn Truck Plant, which makes more of F-150 pickups than any other Ford plant, was one of the few UAW locals that voted against the concessionary package that passed in March.

The contract modifications passed with 59 percent agreeing to the deal. Walkowicz said he sent a petition through the plant that emboldened workers to oppose more concessions.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20090824/ANA02/908249944/1200&AssignSessionID=173349829895320

[blackjack]

I have to really blame Sold out House and Givemethefinger on this one.  Lets face it the pattern agreements were put in place so one company didn't have an advantage over the others.  This whole situation sucks.

 Gettelfinger, Rapson and the General, have just about put the last nail in the coffin for labor in the auto industry.  I don't know allot about King, but he probably isn't any better than the rest. /b]

[Jack]

Blackjack I hate to say it but Ford UAW has had it over GM UAW members for Years now. While the Ford UAW members were making gains GM UAW was giving away the Bank. Just go back over the last 4 or so contracts and You will see the contrast between them. GM for many Years was the Target for Contract Talks but that all changed as I stated above.

[Jack]

Ford Said to Work to Bridge Gap With UAW Opposing Concessions

Aug. 29 (Bloomberg) -- Ford Motor Co., seeking labor concessions granted to U.S. rivals, is working to bridge a gap with the United Auto Workers amid union resistance to a second round of 2009 givebacks, people familiar with the talks said.

Fordís labor chief, Joe Hinrichs, was told by UAW officials when bargaining began on Aug. 25 that members would reject further concessions, said two of the people, who asked not to be identified because the sessions are private. Senior negotiators held a daylong meeting yesterday, a third person said.

ìTheir differences are significant and difficult, but theyíre talking,î said Harley Shaiken, labor professor at the University of California at Berkeley. ìA long discussion means you have something to talk about; stalemates tend to be short.î

Ford, the only U.S. automaker to avoid bankruptcy, is trying for parity in labor costs with General Motors Co. and Chrysler Group LLC. To help those companies restructure, the UAW agreed to a six-year pay freeze for entry-level employees, a no- strike accord until 2015 and fewer union job classifications.

The UAW has been reluctant to grant more concessions to Dearborn, Michigan-based Ford after a March accord to give up annual bonuses and cost-of-living increases and accept reduced layoff benefits. The company said the changes will produce $500 million in annual labor savings.

ëConstructive Relationshipí

ìWe have a history of a constructive relationship with the UAW,î said Marcey Evans, a Ford spokeswoman. ìWe fully expect to reach an agreement thatís mutually beneficial to the company and to our employees.î

Evans declined to comment on the specifics of discussions with the union. A call to Roger Kerson, a UAW spokesman, wasnít returned. Ford has 41,000 hourly workers in the U.S.

After posting a record $14.7 billion loss in 2008, Ford said in July it had second-quarter net income of $2.26 billion after an accounting gain. The companyís $638 million operating loss was less than half of analystsí estimates. July also marked Fordís first monthly U.S. sales gain since 2007.

Shaiken said Ford is likely to have to give the union job security guarantees and promises of more U.S. production in order to win any additional concessions.

ìFord and the UAW have a strong relationship, but theyíre having difficulty within that relationship,î Shaiken said. ìThat isnít a surprise given the shape of the economy and the industry. This can be bridged. It wonít be easy.î

The automaker is boosting second-half output by 26 percent in North America and said Aug. 27 it is adding shifts at factories in Michigan and Missouri.

Ford rose 6 cents to $7.73 yesterday in New York Stock Exchange composite trading. The shares have more than tripled this year.

To contact the reporters on this story: Keith Naughton in Southfield, Michigan, at Knaughton3@bloomberg.net; John Lippert in Chicago at jlippert@bloomberg.net;

http://www.bloomberg.com/apps/news?pid=20601087&sid=aLgZ2S1oimSM