By David Bailey
DETROIT, Oct 23 (Reuters) - Workers at five Ford Motor Co U.S. plants represented by the United Auto Workers have backed a contract aimed at bringing the automaker's labor costs in line with rivals General Motors Co and Chrysler.
These early returns come as the proposed changes to Ford's 2007 contract with the union could face a bigger pushback from the 41,000 Ford U.S. UAW workers who have made a series of givebacks to the automaker since 2005.
More votes are scheduled over the next week. In the four years since the financial crises began for U.S. automakers, UAW workers have ratified negotiated givebacks for each company despite sometimes heated opposition.
Workers at Ford's Michigan and Wayne assembly plants near Detroit voted to ratify the contract, said a source familiar with the process who was not authorized to speak because the ratification has not been completed.
At three Cleveland area plants, workers backed the proposed contract changes 61 percent to 39 percent, UAW Local President Mike Gammella said. The local represents about 1,300 workers at two engine plants and a casting plant.
'Initially there was a lot of pushback, but once people heard the details they supported it,' Gammella said of the proposed changes. 'They weren't doing cartwheels over it, but they understood.'
The turnout was more than 80 percent, Gammella said.
Other locals have scheduled votes through next week on the tentative agreement the UAW and Ford announced Oct. 13. Approval requires a majority of the votes cast by workers.
The proposed changes include a no-strike clause, wage freeze for entry-level workers and other concessions. Ford also made some production commitments and is offering a one-time $1,000 bonus next year if the automaker meets quality targets.
Ford's UAW-represented workers agreed to concessions earlier in 2009 the automaker said would save it about $500 million per year.
However, Ford said agreements GM and Chrysler made with the UAW around their government-supported reorganizations would put the company at a disadvantage over the long term and sought more cuts to bring costs in line with those rivals.
'I'm hearing more opposition than in March,' said Gary Walkowicz, a bargaining committee member at the local that represents workers at Ford's Dearborn Truck plant. He has opposed the changes since the beginning.
Analysts see Ford as in a better competitive position than GM or Chrysler. The automaker has not taken emergency U.S. government loans and has said that it expects to be at least break-even in 2011.
U.S. auto industry sales have been in a decline since 2005 that deepened with the U.S. recession. Sales are expected to fall to just above 10 million vehicles in 2009 from 16.1 million in 2007, with a gradual recovery starting in 2010.
UAW leaders left the ratification vote open-ended. National and regional leaders have been meeting with workers at the plants to go over the details.
Ford shares fell 13 cents, or 1.68 percent, to close at $7.63 on the New York Stock Exchange.
(Reporting by David Bailey; Editing by Lisa Von Ahn, Matthew Lewis and Richard Chang)
((david.bailey@thomsonreuters.com; + 1 313 967 1910; Reuters Messaging: david.bailey.reuters.com@reuters.net 'I Keywords: FORD/UAW
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
DETROIT, Oct 23 (Reuters) - Workers at five Ford Motor Co U.S. plants represented by the United Auto Workers have backed a contract aimed at bringing the automaker's labor costs in line with rivals General Motors Co and Chrysler.
These early returns come as the proposed changes to Ford's 2007 contract with the union could face a bigger pushback from the 41,000 Ford U.S. UAW workers who have made a series of givebacks to the automaker since 2005.
More votes are scheduled over the next week. In the four years since the financial crises began for U.S. automakers, UAW workers have ratified negotiated givebacks for each company despite sometimes heated opposition.
Workers at Ford's Michigan and Wayne assembly plants near Detroit voted to ratify the contract, said a source familiar with the process who was not authorized to speak because the ratification has not been completed.
At three Cleveland area plants, workers backed the proposed contract changes 61 percent to 39 percent, UAW Local President Mike Gammella said. The local represents about 1,300 workers at two engine plants and a casting plant.
'Initially there was a lot of pushback, but once people heard the details they supported it,' Gammella said of the proposed changes. 'They weren't doing cartwheels over it, but they understood.'
The turnout was more than 80 percent, Gammella said.
Other locals have scheduled votes through next week on the tentative agreement the UAW and Ford announced Oct. 13. Approval requires a majority of the votes cast by workers.
The proposed changes include a no-strike clause, wage freeze for entry-level workers and other concessions. Ford also made some production commitments and is offering a one-time $1,000 bonus next year if the automaker meets quality targets.
Ford's UAW-represented workers agreed to concessions earlier in 2009 the automaker said would save it about $500 million per year.
However, Ford said agreements GM and Chrysler made with the UAW around their government-supported reorganizations would put the company at a disadvantage over the long term and sought more cuts to bring costs in line with those rivals.
'I'm hearing more opposition than in March,' said Gary Walkowicz, a bargaining committee member at the local that represents workers at Ford's Dearborn Truck plant. He has opposed the changes since the beginning.
Analysts see Ford as in a better competitive position than GM or Chrysler. The automaker has not taken emergency U.S. government loans and has said that it expects to be at least break-even in 2011.
U.S. auto industry sales have been in a decline since 2005 that deepened with the U.S. recession. Sales are expected to fall to just above 10 million vehicles in 2009 from 16.1 million in 2007, with a gradual recovery starting in 2010.
UAW leaders left the ratification vote open-ended. National and regional leaders have been meeting with workers at the plants to go over the details.
Ford shares fell 13 cents, or 1.68 percent, to close at $7.63 on the New York Stock Exchange.
(Reporting by David Bailey; Editing by Lisa Von Ahn, Matthew Lewis and Richard Chang)
((david.bailey@thomsonreuters.com; + 1 313 967 1910; Reuters Messaging: david.bailey.reuters.com@reuters.net 'I Keywords: FORD/UAW
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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