Ford Motor Co. offered pledges for new production and a $1,000 bonus tied to quality goals, according to sources familiar with the matter. The terms have not been made public.
(David Zalubowski/ Associated Press/ File)
Ford, UAW apparently have deal
Accord includes strike ban, freeze on new-hire wages
Ford Motor Co. offered pledges for new production and a $1,000 bonus tied to quality goals, according to sources familiar with the matter. The terms have not been made public.
(David Zalubowski/ Associated Press/ File)
SOUTHFIELD, Mich. - Ford Motor Co., seeking concessions granted to US rivals, reached a tentative United Auto Workers accord that includes a six-year ban on some strikes and a wage freeze for new hires, two people familiar with the matter said.
UAW leaders will present the plan Tuesday in Detroit to the Ford National Council, which consists of factory-level union chiefs, said the people, who asked not to be identified because the terms aren’t public. Ford offered pledges for new production and a $1,000 bonus tied to quality goals, the people said.
New savings would help Ford build on a $500 million cut in labor costs under a UAW agreement in March, while the sweeteners are aimed at damping resistance to fresh concessions. General Motors Co. and Chrysler Group LLC won union givebacks to help them with their US-backed bankruptcies.
“There’s a lot of sentiment against concessions inside the plant,’’ said Gary Walkowicz, a union official at a Ford truck factory in Dearborn, Mich., who isn’t directly involved in the national contract talks.
Ford, the only US automaker to avoid bankruptcy, is seeking parity in labor expenses with GM and Chrysler, which received UAW approval for a six-year pay freeze for entry-level employees, a no-strike accord until 2015, and fewer job classifications.
The March accord with the UAW calls for Dearborn-based Ford’s 41,000 US hourly workers to cede annual bonuses and cost-of-living increases and accept reduced layoff benefits.
Ford declined to comment yesterday on whether an accord had been reached on new concessions. “We don’t have an announcement to make,’’ said Marcey Evans, a spokeswoman. “We continue to work with the union and we are making progress.’’
A UAW spokesman, Roger Kerson, didn’t immediately respond to a phone call and e-mail requesting comment.
Strikes over wages and benefits would be prohibited for six years under the new agreement, while walkouts over issues such as plant safety would still be permitted, the people said.
The plan doesn’t include cuts to retiree benefits, such as vision coverage, that were granted to GM and Chrysler, the people said. The $1,000 bonus payment will be made to Ford workers in March based on meeting 2009 product-quality targets, one person said.
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