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This is an archive article published on October 14, 2009

Ford,UAW reach tentative deal

The union's National Ford Council endorsed the deal Tuesday with some dissenting delegates.

The United Auto Workers and Ford Motor Co announced a tentative agreement on Tuesday with a no-strike provision and other concessions to bring its labor costs in line with US rivals.

The union8217;s National Ford Council endorsed the deal Tuesday with some dissenting delegates,sending it next to a vote of the roughly 41,000 US UAW workers at the automaker expected to be completed over the next few weeks.

Ratification of the concessionary agreement,which includes a one-time 1,000 bonus,may be a hard sell for Ford workers who have already agreed to a series of give backs since 2005.

Ford has said it expects to return to at least break-even in 2011 and analysts see it as being in a stronger competitive position than rivals General Motors Co and Chrysler Group LLC,which were reorganized under government-supported bankruptcies in 2009. Key provisions of the Ford deal would freeze wages for entry-level workers at 14 per hour and prohibit the union from striking over wage and benefit claims when the current contract expires in 2011.

UAW President Ron Gettelfinger said the tentative agreement would provide job security to current Ford workers by winning production commitments from the automaker.

8220;There is a lot of product commitment here that8217;s secured 8212; both prior commitments secured from 2007 and additional products,some of which we can8217;t disclose,8221; Gettelfinger told reporters after union officials approved the proposed contract terms.

He said the deal represented 8220;a delicate balance8221; for the union as it aims to help Ford return to profitability.

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8220;We want Ford to do well and we know that as they continue to improve that it would make the ratification a little more difficult,8221; Gettelfinger said.

Gettelfinger said the union had not set a time frame for completing the ratification vote. Other officials said they expected the vote to be concluded in two to three weeks.

LETTING MEMBERS DIGEST DETAILS

8220;We8217;re going to take our time and let the members digest the information because there has been a lot of misinformation out there on this contract,8221; said Jeff Terry,president of a local for workers at a Sterling Heights,Michigan,plant.

UAW local officials,who met for over two hours at a Detroit hotel to discuss the deal on Tuesday,said they believed membership would approve the proposed changes.

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8220;Will it be more contentious than in the past? Yeah,sure,8221; said Jack Muncie,a worker at UAW Local 862 in Evansville,Indiana. 8220;Personally,I like it,but there8217;s a lot of people within the union who really don8217;t want to give anything.8221;

Ford has been seeking to bring its contract in line with the deeper concessions the UAW agreed to for GM and Chrysler.

 

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