Ford UAW workers overwhelmingly reject cost-saving contract changes

Ford Motor Company workers have overwhelmingly rejected contract changes that would have allowed Ford to cut labor costs and be more competitive with Government owned GM and Chrysler. This leaves Ford at a disadvantage in its struggle for profitability. Many believe that the UAW rejection is merely a retaliation tactic because unlike GM and Chrysler, Ford didn’t take bailout money. Ford hoped a deal could be reached to bring its labor costs in line with the two NOW government owned car companies. More from Yahoo/AP:

The United Auto Workers union had given local unions until Monday to complete voting. But a person briefed on the voting said Saturday that the contract changes have been rejected by large margins. The person asked not to be named because the UAW hasn’t announced the results yet.

The UAW and Ford agreed to the contract changes several weeks ago, but Ford workers needed to ratify them. Ford has 41,000 UAW-represented workers.

Two large union locals in Kentucky and Ford’s home city of Dearborn rejected the contract Friday, sealing its fate. Those unions together represent 13,000 Ford workers. Exact tallies weren’t available, but at least 12 UAW locals representing about 27,500 workers so far have vetoed the deal, many overwhelmingly. Only about four locals with a total of 7,000 members favored the pact.


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November 1, 2009 · Filed Under General Politics

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