Magazine article Personnel Journal

UAW Agrees on Contracts with Ford and Chrysler; Now It's GM's Turn

Magazine article Personnel Journal

UAW Agrees on Contracts with Ford and Chrysler; Now It's GM's Turn

Article excerpt

THE UNITED AUTO WORKERS' (UAW) 200member National Ford Council ratified a new national contract with Dearborn, Michigan-based Ford Motor Co. on September 29, after many long days-and nights-of heated discussions.

Workers voted overwhelmingly (90 percent of production workers voted for it, as did 83 percent of skilled-trade workers) to ratify a new three-year contract. The new contract includes such provisions as a $2,000 lump sum in the first year and 3 percent raises in each of the following two years. In total, the pact provides the typical Ford worker with $13,910 in new cash compensation over the next three years. The firm also has agreed to subsidize the cost of college tuition for its union workers' children (up to $1,000 per child, per year).

The contract with Ford contains a landmark provision guaranteeing that the automaker will maintain at least 95 percent of its 105,025-member union workforce during the next three years.

However, the contract also allows Ford the ability to hire workers at a lower wage rate in any new parts businesses it enters. This move allows Ford a strategic advantage in keeping its parts businesses inside the corporation rather than having to outsource (contracting the work outside the firm) to nonunion suppliers. …

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