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Tue, Nov 6, 2007

UAW Leaders Praise Ford Pact

United Auto Workers leaders countrywide give high praises to the recent Ford pact. They said promises to save jobs will help ratification.

Aside from giving standing ovations for bargainers, the UAW Ford National Council -- made up of delegates from more than 55 Ford facilities across the nation -- voted unanimously to recommend ratification of the proposed 4-year deal, reported Detroit Free Press.

"I believe it will pass," said Nick Kottalis, an official with UAW Local 600, which represents more than 5,000 workers at the Dearborn Truck Plant and other local facilities. Kottalis thought the Dearborn automaker went far to assure workers, who are more nervous than ever about job security. "We're very finicky people after seeing what happened at GM and Chrysler," he said. "But just looking at it, it does look pretty good."

Ford execs are not commenting on the details of the agreement, but they have said it is mutually agreeable. "I can say with conviction it's fair for employees, retirees and paves the way to increased competitiveness," said Mark Fields, president of Ford's business in the Americas. The more than 50,000 UAW members who work for Ford nationwide will now vote to approve or reject the contract at their local union halls over the next week or so.

Despite the fact that Ford is in the midst of a recovery plan for North America, the UAW summary of the deal said: "Ford has agreed that it will not close, idle, nor partially or wholly sell, spin off, split off, consolidate or otherwise dispose of, in any form, any plant, asset or business unit of any type beyond those which have already been identified."

The UAW summary stated:

• Protects U.S. plants that have not already been slated for closure under Ford's Way Forward turnaround plan. The exception is Woodhaven Forging, which "may be considered for sale or closure during the term of the agreement."

That plant, which employs 74 workers, was slated for closure under Ford's 2002 revitalization plan, but Ford never pulled the plug.

• Brings new products and investments to nearly all of Ford's U.S. factories, including some that were thought to be on life support, such as Wayne Stamping and Assembly and Michigan Truck, also in Wayne.

• Establishes a new entry-level wage of $14.20 for employees hired on or after the proposed deal is ratified. The number of entry-level workers corporate-wide will be 20%. Once that level is reached, workers hired at entry-level wages will be transitioned to seniority positions at traditional pay rates before any new entry-level workers are hired.

• Establishes a union-managed health care trust fund for retirees, just like the UAW's deals with General Motors Corp. and Chrysler LLC. Ford will pay $13.2 billion to establish the trust and will provide another $2.2 billion in other retiree health care costs.

• Provides that, for the first time, the UAW will have a say in Ford's current operations and future product. The vice president and director of the UAW National Ford Department, which is currently Bob King, will serve as a member of Ford's manufacturing operating committee.

"This will ensure that the UAW Ford workers have a seat at the table during discussions about the future," continued the summary.

The Ford pact could serve as a controlling agreement in Volkswagen Canada or other automakers - domestic or foreign. Good thing it is pretty responsive to workers’ claims, though a little polishing is much desired.