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Ford and UAW bargaining intensifies as progress seen



By Kevin Krolicki
02 November 2007 @ 09:11 am ET

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Ford, which lost a record $12.6 billion last year, has indicated it was looking for about 8,000 to 10,000 factory job cuts. That would be in addition to the 27,000 UAW jobs Ford had cut as of June.

Moreover, Chrysler's surprise move on Thursday to cut up to another 10,000 UAW-represented factory jobs and eliminate four vehicles from its line-up could complicate the union's bargaining with Ford, analysts said.

Chrysler workers last week narrowly ratified a four-year contract giving the automaker the flexibility to bring in new hires at half the wage rates of current workers and to shift some $19 billion in retiree health care costs to a new trust fund.

Chrysler's immediate move to cut another one-fifth of its factory work force will make it more difficult for UAW leadership to get Ford workers to ratify a contract with sweeping concessions, analysts said.

"Ford workers are going to feel a sense of betrayal to a point as well," said Jerry Tucker, a former UAW official who campaigned against ratification of the Chrysler and GM contracts.

Ford has said it will close 16 North American factories as part of its restructuring but has so far identified only 10 of those. Ford has 33 UAW-represented U.S. factories.

The six unidentified plants have now been swept up into the contract talks, with Ford holding out the prospect of more limited plant closings in exchange for other concessions.

Both Ford and UAW declined to comment on the negotiations, citing the private nature of the bargaining.

The UAW has not yet issued a notice terminating its contract extension with Ford, in contrast to the harder line it took with Chrysler and GM. The extension could be ended by either party with a 72-hour notice.

Gettelfinger, who began his career at Ford, has said he wants the automaker to match the broad outline of the UAW's deal with GM and Chrysler. That would include funding for a trust to take over Ford's retiree health care costs.

Copyright 2009 Thomson Reuters. All rights reserved.

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