| |||||||||||||||||||||||
| |||||||||||||||||||||||
The United Auto Workers scored a major victory as its tentative contract with Ford Motor Co. heads out the door for ratification by members.
UAW local leaders voted unanimously Monday to support the deal, despite concessions including the establishment of a two-tier wage system for new hires and a union-managed trust that will fund retiree healthcare expenditures. The union is hoping that with locals behind the deal, membership will follow. That was not the case with Chrysler LLC, where union officials had to rally support after a number of prominent local leaders came out against the contract. Industry watchers expect Ford’s 54,000 UAW workers to ratify the agreement in votes scheduled to take place between now and Monday. But there are differences in opinion on how easy that approval vote will be to secure, and on whether Ford's place as the last company without a ratified contract will work for or against the deal winning approval. One school of thought has it that Chrysler’s announcement just days after its deal was approved that the company would cut 15% of its work force will work against Ford, as it will provide new ammunition to those who feel these concession deals have dramatically shifted the balance of power in favor of the companies at the expense of the UAW. Dissidents, though unsuccessful at Chrysler, emerged from that fight with valuable experience and emboldened to make Ford their one last stand. But others believe that a majority of workers have grown to accept the concession deals in the months since details first emerged of an initial deal with General Motors Corp. With the domestic auto industry struggling, union workers seemingly realized going into these talks that cost cuts were coming, and the UAW’s modest success in keeping some facilities open through the life of the new contract with Ford is likely to be enough to convince workers to go along. — Lou Whiteman See Detroit News story on the approval by local leaders
Categories Deal Video
    Community
 Elsewhere on The Deal.comDealwatch
The Deal MagazineCorporate Dealmaker
The Deal VideoCategories
Blog roll
Archives
| |||||||||||||||||||||||
|
|
|
|
|
