The UAW is planning to present changes to the existing four year labor agreement it has with Ford Motor Company to its National Ford Council delegates later today in Detroit. If the delegates agree to the changes then the agreement will be put to a member vote.
Although details have not yet been released by the UAW or Ford pending membership vote, Ford has stated that the changes from the agreement will allow the automaker to “improve its current and long-term competitiveness in the United States.”
An anonymous source has confirmed to Automotive News that the pending agreement will likely include a wage freeze for new hires, a one-time bonus, a no-strike provision at contract expiration, as well as production commitments.
Historically the UAW has maintained virtually identical contracts with each of the big three American automakers, but with the recent bankruptcy filings by General Motors and Chrysler an imbalance has been created across those agreements. This imbalance continues in favor of GM and Chrysler despite the UAW already awarding concessions in February of this year to Ford. Ford has stated that the February concessions will save $500 million per year and will also give Ford some flexibility in choosing how it will fund the union retiree health-care trust.
