Ford seeks to make amends with union over concessions
Posted on September 4, 2009
Filed Under Uncategorized | Leave a Comment
Detroit Ford Motor Co., seeking labor concessions granted to US rivals, is working to bridge a gap with the United Auto Workers amid union resistance to a second round of 2009 givebacks, people familiar with the talks said.
Ford’s labour chief, Joe Hinrichs, was told by UAW officials when bargaining began on August 25 that members would reject further concessions, said two of the people, who asked not to be identified because the sessions are private. Senior negotiatiors held a day-long meeting Friday, a third person said.
“Their differences are significant and difficult, but they’re talking”, said Harley Shaiken, labour professor at the Universtiy of California at Berkeley. “A long discussion means you have something to talk about; stalemates tens to be short”.
Ford, the only US auto-maker to avoid bankruptcy, is trying for parity in labor costs with General Motors Co and Chrysler Group LLC. To help those companies restructure and disability appeal, the UAW agreed to a six-year pay freeze for entry – level employees, a no-strike accord until 2015 and fewer union job classifications.
The UAW has been reluctant to grant more concessions to Ford after a March accord to give up annual bonuses and cost of living increasees and accept reduced layoff benefits. The company said the changes will produce $500 million in annual labour savings.
Leave a Reply