Though the vote was close, about 59 percent of United Auto Workers union members agreed to make certain concessions to their 2007 national labor contract with Dearborn, Michigan, automaker Ford . The concessions protect their wages, but suspend bonuses, as well as eliminate the controversial jobs-bank lay-off program.
Ford will also be able to cut down on the costs of the retiree health care trust by using more stock and less cash than before.
“Once again UAW members have stepped up to make the difficult decisions necessary to deal with the reality of the current economy,” UAW President Ron Gettelfinger said in a statement released to the media.
It’s expected that the successful negotiations will also help Chrysler and General Motors in their similar cost-cutting quests. A stipulation of the federal loans granted to the automakers required Chrysler and GM to reach concessions from the UAW.
Workers will take shorter breaks and be paid 40 hours before overtime, which now means that Ford can keep workers on the line for four 10-hour days. The workers don’t have any pay cuts, but they’ll lose cost-of-living increases and performance bonuses, at least in the short term. They won’t lose their health or pension benefits, however.
The controversial jobs bank, which provided up to two years of partial pay for laid-off workers, will go away.
Ford cut its cash contributions to the retiree health care fund by half. The balance of fund payments will be made up for by stock payments beginning in 2010.
