We got a good deal for workers

UAW President Ron Gettelfinger said Tuesday that a tentative agreement that the union reached with Ford Motor Co. is a good deal because the Dearborn automaker agreed to pay workers onetime $1,000 bonuses — and it made extensive job and product commitments at U.S. plants.

“There is no better job security,” Gettelfinger said during a news conference at the Renaissance Center.

Ford has sought modifications to its UAW labor contract ever since General Motors Co. and Chrysler Group LLC won advantageous provisions in their contracts on the eve of their bankruptcies this spring.

But Ford workers have said they were reluctant to ratify more concessions because Ford has been gaining market share and its financial outlook has improved. What’s more, they already approved contract changes in March that were to save Ford about $500 million a year.

Ford, however, has argued that it still faces challenges and needed more flexibility.

“Ford does have more debt on their balance sheet,” Gettelfinger said. “So they were at a bit of a disadvantage. We want Ford to be successful.”

Ford’s more than 41,000 UAW-represented workers are expected to vote on the deal in the days ahead.

UAW leader: Contract not concessionary, but positive

The UAW’s Ford National Council recommended Tuesday that its members vote in favor of a modified labor agreement that helps Ford trim long-term costs and more closely match more generous deals obtained earlier this year by crosstown rivals GM and Chrysler.

The union also sought to paint the new tentative deal as advantageous to Ford’s 41,000 UAW-represented workers, who still must ratify the proposal. Voting is expected to begin in the days ahead.

UAW President Ron Gettelfinger said the tentative Ford-UAW deal “isn’t a concessionary agreement” because of the extensive product, job and bonus commitments that Ford is offering in return for three key contract changes.

“This agreement, when you look at it, has more positives for our membership than it has negatives,” Gettelfinger said during a news conference after a closed-door meeting among the union’s leadership at the Renaissance Center.

One of the key highlights of the new deal includes Ford’s agreement to pay onetime $1,000 bonuses to workers. The last time Ford UAW workers received bonuses was in March 2008, when they received $1,000 for the company’s improved performance.

The automaker also promised to build new vehicles and parts at U.S. factories, and it recommitted to its ongoing effort to create more than 2,000 jobs, according to a document obtained by the Free Press.

“Instead of talking about job security, we talked about product commitments, and the right to enforce those product commitments,” Gettelfinger said.

In return, the UAW agreed to a wage freeze for entry-level workers, a reduction of skilled-trades classifications and an agreement to enter into binding arbitration on wage and benefit issues.

Ford’s binding arbitration clause is very similar to a clause in GM’s contract.

Ford said the agreement would improve its long-term U.S. competitiveness.

Ford has been seeking changes to its labor contract with the UAW for months, even though it reached an agreement on a modified labor contract in March that cuts Ford’s annual costs by about $500 million.

In August, when the UAW called its local leaders to Detroit to discuss the possibility of more contract changes, the idea was met with strong resistance, said several officials who attended the meeting.

Even with Ford’s extensive commitments, Jack Muncie, of UAW Local 862 in Louisville, Ky., predicted that passage would be difficult.

“I love Ford, so we will consider it and hopefully we’ll come out ahead,” Muncie said.

Mike Jackson, building chairman for UAW Local 788 in Lakeland, Fla., said: “It sounds good, but we will put it out there and see what the membership says.”

The main reason for the resistance is that Ford’s business conditions have improved as the company has gained favor with consumers for not taking taxpayer dollars. Plus, UAW members say they feel they already contributed to that success by agreeing to significant changes in March.

This year, Ford has gained a full point of market share in the United States. For the first half of the year, Ford also has posted a profit of $834 million, although much of that is because of onetime special charges.

Still, Ford continues to face serious challenges.

When Ford reports third-quarter financial results later this month, Wall Street analysts expect the company to lose 21 cents per share. Ford also has $35 billion in debt and other financial obligations to pay by 2013.

“They have twice as much debt on their balance sheet as what General Motors does,” Gettelfinger said. “We want Ford to do well, and we knew as they continued to improve, that it would make the ratification a little bit more difficult.” – Freep

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