Tentative Agreement Reached by Ford and UAW

Last Saturday, Ford Motor Co. reached asoon as the contract is signed they turn around
tentative deal with the United Auto Workersand announce major layoffs."
Union. Unlike the deals the union reached withIf most of the hourly workers included in the
General Motors and Chrysler LLC, the UAW did54,000 UAW represented Ford workers will
not launch a strike to get their demands fromapprove the contract, it will mark the end of the
America's second largest automaker.four months negotiations and the historic third
Approving the deal may not be easy to Fordcontract of Ford. However, the new contract will
employees after seeing the layoffs and cutbackslower down the labor cost and will change how
for their GM and Chrysler counterparts.retiree benefits are to be handled.
"If it's a similar agreement negotiated at GM andThe new contract between Ford and the UAW
Chrysler, then it's terrible for the workers and thewas reached last Saturday around 3:20 am.
future," said Gary Walkowicz, a worker andBefore tentative agreements were reached by
former local union official at a truck plant inChrysler and GM, the UAW held short strikes
Dearborn, where Ford's headquarters is located.against the automakers but no strike threats
Recently, Chrysler LLC and GM announced thatwere made to Ford.
they would eradicate shifts at assembly plantsAccording to one source familiar with the
and lay off workers. Last month, GM confirmednegotiations, Ford agreed not to continue their
that the automaker would cut shifts at threeplans of closing some of its U.S. plants and make
Michigan plants where some of its cars and carsome major investments to continue those plant's
parts (like Volvo headlight lens) are made thatoperations. For Ford's advantage, the deal allows
affects almost 1,700 jobs. Last week, Chryslerthe automaker to pay new hires with lower
LLC made the same announcement of cuttingwages, same as that of GM and Chrysler. Ford is
8,000 - 10,000 hourly jobs.also required to fund the health care benefits of
Both the GM and Chrysler deals guaranteed newthe retirees with $22 billion via a union-controlled
jobs and investments in its American plants buttrust.
lacked pledges on the staffing aspect and allowing"Though we will not discuss the specifics of the
the automakers to adjust the staff to meet theirtentative agreement until after it becomes final,
vehicle demands. With this scenario, workers atwe believe it is fair to our employees and
Ford are already apprehensive that Ford will makeretirees, and paves the way for Ford to increase
new job protection vows.its competitiveness in the United States," Joe
"I think there is a certain amount of skepticism,"Laymon, Ford's group vice president for human
he said, "The other contracts had this supposedresources and labor affairs, said in a statement.
job security, which of course wasn't there, and as