UAW Sends Ford Deal to Rank and File for Ratification

09/20/96

Reuters reports that the United Auto Worker's 's 200-member National Ford Council voted unanimously to send the union's tentative agreement to Ford workers for ratification. The new deal offers workers a number of economic gains and provisions for job security. 105,000 hourly UAW workers will vote on whether to accept or reject the contract; the ratification vote will be completed by Sept. 29.

The UAW disclosed that the pact would provide a typical Ford worker with $13,910 in new cash compensation over the next three years, and offers to pay $1,000 a year worth of tuition costs for workers' college-aged children.

Glenn Maxwell, a bargaining committee member from UAW Local 900 at Ford's truck plant in Wayne, Michigan said, "it's the best agreement we've had since 1976 and we had to strike to get that."

The UAW-Ford agreement includes a historic commitment whereby Ford will guarantee employment for 95 percent of its current work force. The contract requires Ford to replace retiring workers at a faster rate if employment at each plant or grouping of plants drops below 95 percent of their staffing levels on the first day of the contract. It also provides a safety-valve mechanism whereby Ford can temporarily shrink its workforce if it performs badly because the market takes a severe nosedive.

Ford's gains under the new contract include a precedent that allows the carmaker to pay lower wages to workers in new parts businesses and creates a framework to make Ford's skilled trades operations more flexible and efficient.

The contract would allow Ford to pay workers in new parts businesses at the prevailing wage and benefits level for that industry segment or for the geographic area where the business is located. It does not allow Ford to pay lower wages in new businesses that would compete with component work already done by Ford workers, and it prohibits Ford from undercutting wages and benefits of non-Ford UAW workers in the same industry or geographic area.

The contract represents the first time that a three year UAW contract contains more than one annual increase in base wages since 1979. UAW members will receive a lump sum payment of $2,000 in the first year of the contract, and 3 percent base wage increases in years two and three.

Additionally, monthly pension payments for workers who retire after 30 years of service but before age 62 will increase by 13 percent from $2,030 to $2,295 after Oct. 1, 1998. Previously retired workers will receive lump-sum payments based on the inflation rate, marking the first time that pensions will receive cost of living adjustments (COLA). Retirees have long lobbied for COLA.

Tuition benefits for children of workers, retirees and families of deceased workers mark another first in the contract. Ford has agreed to pay annual tuition assistance of up to $1,000 for each child or stepchild under 25. Retirees can receive up to $1,000 of continuing education assistance.

The new contract provides for existing workers to retain their fully paid health care benefits and receive several improvements in coverage, including coverage for prostate cancer tests.

Paul Dever -- The Auto Channel