Posted on 03/09/2009 2:06:12 PM PDT by Abathar
DETROIT -- Unionized workers at Ford Motor Co. have approved contract changes that include freezing wages and cutting benefits in a move to aimed at helping the automaker remain competitive.
The United Auto Workers said Monday a majority of hourly workers voted in favor of modifications to the 2007 contract with Ford, eliminating cost-of-living increases and cash bonuses.
The UAW said 59 percent of production workers and 58 percent of skilled-trades workers voted for the concessions.
"By working together with our UAW partners, we identified solutions that will help Ford reach competitive parity with foreign-owned auto manufacturers and that are important to our efforts to operate through the current economic environment without accessing a bridge loan from the U.S. government," said UAW President Ron Gettelfinger in a written statement.
(Excerpt) Read more at theindychannel.com ...
“By working together with our UAW partners . . .”
How dumb are they? The UAW is a giant leech sucking the life blood out of the company.
Ford has the best chance of the US automakers of coming out of this crisis as a vital entity.
Yep, if I'm not mistaken, they are the only US automaker to not take bailout money. If true, they are the only US automaker who I will consider buying a car from in the future.
Ford is gonna be the one to survive it seems.
Ford ping!
Looks like the union knows that too.
This is the only thing that might have a chance to save GM, let it file chapter 11 and get rid of the unions all together. Cut the pay in half and the benefits in half...they can suffer like the rest of us.
Yes, but if GM declares bankruptcy and is able to shrug off a lot of the legacy costs that are acting like a boat anchor tied to their bottom line they might be in a good position also.
IF, and it’s a big IF, the government will allow the unions to take the hit they have needed for decades. With this administration there is a lot of favors owed the unions by Dems, especially Baraq. It will be interesting to see how he handles a bankruptcy judge terminating the contracts and legacy obligations to allow GM to shrug off the massive leach sucking it dry.
The screams of the unions will be heard on every network and in every paper that they are getting the shaft, but it’s a well earned shaft IMHO.
If vendors were ranked in terms of cost, BCBS would be Ford's #1 vendor. Put otherwise: health-care costs more per unit than steel.
How does this contract affect the legacy costs?
Anybody who reads my ramblings knows I am a child of Detroit and have been both a UAW member and an Engineer in the Big Three.
I want the Bozos to succeed; if possible.
LOL! I see Ford went to the mat for this :-)
I pay $364 per month for my wife and myself for health insurance. $600 deductable and then 80/20 to a max of $1,000 out of pocket each.
I pay 100% of all office calls and they do not count against the deductable. Prescription drugs are $5 copay on generic and $15 and up for name brands. If the drug is "too expensive", the insurer tells me to have the doc order a different one or pay for all of it myself. My monthly pension is $1235.00, the premium comes out of that.
I'm in fairly good health, except for my hands which are pretty much shot from using pneumatic hammers, wrenches and grinders for so many years, if I need a jar opened I get my 9 year old grand son to open it for me. I'm not complaining, just stating some FYI. I am a UAW retiree.
Can’t blame only the union - though I’d like to. There’s the dumb management side of the equation that thought they could forever pass the cost onto the consumer.
Oops.
Well, it worked for a lot of years at any rate.
Born in Detroit, grew up and lived in Brighton almost my whole life. I’m fourth generation of tier1 and tier2 supplier to the Big Three, and no one wants them to succeed more than I do.
The fact is we always knew this day of reckoning was coming, moving our business away from automotive and into other markets is the only reason we are still here now, that and leaving Michigan and moving into a state that understands small businesses and will cater to them.
I have worked with some engineers on projects that have caused me to seriously consider driving foreign cars, their decision making process using logic and the amount of money they waste is staggering.
That being said engineers that are working there now are dealing with union negotiated grandfathered clauses that were put in place before they were even born. Getting a lot of that stripped out and dropped has to be done or there is no way any of them can continue in the present UAW generational mindset.
No one needs a contract that is 8 inches thick of legal paper, heck nations have settled wars with less clauses and addendums than these contracts have.
Unionized workers at Ford Motor Co. have approved contract changes that include freezing wages and cutting benefits in a move to aimed at helping the automaker remain competitive... The UAW said 59 percent of production workers and 58 percent of skilled-trades workers voted for the concessions.
He collects $2455 per month in pension plus Social Security (I don't know how much), he has BCBS plus Medicare Part D to cover prescriptions.
This is as good as the company remains solvent, which probably is not going to happen.
A crappy deal all around.
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