Archives

http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg With wage and benefit parity on the way, expect non-Union auto manufacturer employees at Toyota, Honda, Nissan, Hyundai, BMW and MB to lose wages and benefits soon as well. (cleanmpg.com/forums/showthread.php?p=188535)

http://www.cleanmpg.com/photos/data/501/Ford_s_-_Way_Forward.jpgWayne Gerdes – CleanMPG (cleanmpg.com) – Feb. 17, 2009

Ford trying to survive in a very tough economic environment.

Joe Hinrichs, group vice president, Global Manufacturing and Labor Affairs, Ford Motor Company.

Dearborn, MI – Ford and the UAW have reached a tentative agreement to modify certain operating provisions of the 2007 UAW-Ford National Labor Agreement, which if ratified would help Ford operate through the current economic downturn without accessing a U.S. government bridge loan and continue to invest in the company’s ONE Ford product-led transformation.

The agreement, reached Sunday afternoon, includes modified provisions on labor costs, benefits and operating practices that allow Ford to reach competitive parity with foreign-owned automakers’ manufacturing operations in the U.S.

A final settlement agreement is contingent upon the UAW and Ford reaching agreement on funding issues associated with the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust.

The final agreement would cover approximately 42,000 UAW-represented employees in the United States and would be subject to ratification by the active UAW-Ford membership.

This is much needed by Ford... even as it hits the rest of the auto industry.

It seems every business sector (except the government!!) is feeling the same crunch.

Don't worry Sean, government is feeling it too. Look at California where Aronold is laying off 20,000 if the tax proposals aren't passed. In our fair city the mayor is proposing laying of 10% of the work force and maybe putting the bulk of the employees on 4 day work weeks.

Wayne

Dallas' budget gap could reach $100 million (http://cityhallblog.dallasnews.com/archives/2009/02/dallas-budget-gap-could-reach.html) :(

Hi All:

___An addition given it is now a tentative agreement...

UAW AND FORD REACH TENTATIVE AGREEMENT ON FUTURE FUNDING OF THE VEBA HEALTH CARE TRUST

Dearborn, MI – The UAW and Ford have reached a tentative agreement on modifications to the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust.

Ford today said they were pleased with the agreement, which provides up to 50 percent of the payments into the VEBA can be settled with Ford common stock in lieu of cash. Ford will consider each payment when it is due and use our discretion in determining whether cash or stock makes sense at the time, balancing our liquidity needs and preserving shareholder value.

The VEBA agreement – together with the agreement reached Feb. 15 by Ford and the UAW to modify certain operating provisions of the 2007 National Labor Agreement – is subject to ratification by the active UAW-Ford membership and other conditions, including pursuing restructuring actions with other stakeholders. Additionally, the VEBA agreement requires court approval.

The agreements, if finalized, will allow Ford to become competitive with foreign automakers’ U.S. manufacturing operations, and are critical to our efforts to operate through the current deep economic downturn without accessing government loans and continue to fully invest in our ONE Ford product plan.

I would like to thank the entire UAW leadership and national bargaining committee – particularly UAW President Ron Gettelfinger and UAW Vice President Bob King – for their leadership during these important discussions. I also would like to thank Ford’s national bargaining team for their tireless efforts over the past few weeks.

All of us at Ford will continue to work with all of our stakeholders to participate in the current industry restructuring and improve our company’s overall competitiveness.

This means that Ford has a good chance of avoiding govt loans if things get no worse.