The United Auto Workers and the Ford Motor Co. have agreed to alterations in the health care trust the union maintains for retirees, following a tentative agreement on February 15 regarding operating practices, labor costs, and benefits.

The exact changes to the Voluntary Employees' Beneficiary Association (VEBA) have not been released, but according to a statement issued by Ford, the company will be able to complete as much as 50 percent of its scheduled payments into the fund with common stock.

Joe Hinrichs, Ford group vice president of global manufacturing and labor affairs, wrote in the statement."We 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."

Additionally, Hinrichs said that the new agreement with the union 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."

Ron Gettelfinger, UAW president, said, "The modifications will protect jobs for UAW members by ensuring the long-term viability of the company." Currently, Ford is the only major American automotive manufacturer not operating with a sizable infusion of federal funds.