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Ford, UAW Contract Set to Go to the Membership
03:48 p.m. EDT, November 05, 2007

The tentative agreement reached between the Ford Motor Co. and the United Auto Workers union should face a smooth road to approval.

The proposed contract, which includes both product commitments for the future and job guarantees will go to the membership for ratification after national UAW leaders meet with shop chairs and local presidents to review the contract details.

Six plants that were slated for closure are preserved under the deal's terms. Chicago Assembly and the Wayne Assembly Plant and Michigan Truck in suburban Detroit will received new products beyond their present vehicle cycles.

Ford had announced the intended closure of 16 plants, but named only 10. Now the remaining six will apparently stay open beyond 2011, saving more than 10,000 jobs in the short term.

All of these details were given to Automotive News from an "inside source" as Ford apparently did not want specific strategic information about product placements released in the highlight book the UAW will distribute to workers as part of the ratification process.

As part of the contract, Ford should save as much as $2 billion annually due to the union administered health care trust, lower wages to be paid to new hires, and changes in factory rules.

Like General Motors and Chrysler, Ford went into the UAW negotiations with the goal of cutting expenses and narrowing the cost gap with the Asian competition.


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