| After all, who needs an automaker who's not on the federal dole? |
At Ford's Dearborn Truck Plant, which is part of the larger UAW Local 600, 93% of workers voted to reject, two UAW officials said Friday. Meanwhile, UAW Local 862 in Louisville, Ky., rejected the deal late Friday night, with 84% opposed. Final results are to be reported Monday -- when Ford is to report its third-quarter financial results.
UAW President Ron Gettelfinger told the Free Press on Friday that the deal "still has a chance of being ratified." But if it fails, he said, "There would be no reason" to reopen negotiations. The current contract expires in 2011. "We are not going to give up," Gettelfinger said.
"Our membership has the right to express themselves," Gettelfinger said. "This was a positive contract for our membership -- it gave them long-term job security."
Although a failure to ratify might be viewed as an embarrassing blow, experts told the Free Press that the deal doesn't matter much in the short term for Ford because the automaker and the union already reached a deal on a contract earlier this year that saves $500 million annually.
The only clear financial consequence from a contract rejection will be to workers. By not giving workers the $1,000 bonus promised, Ford will save $41 million.
| Shrewd, real shrewd ... |
The tentative agreement, which was recommended for ratification by the UAW's leadership earlier this month, calls for a wage freeze for entry-level workers, a commitment to binding arbitration in 2011 for disagreements over pay and benefit increases and a consolidation of skilled-trades classifications. In return, Ford has agreed to provide a $1,000 bonus to workers and additional work to a number of plants.
It allows Ford, generally, to match labor cost savings that General Motors and Chrysler got through bankruptcy reorganizations. Ford executives have told workers and Wall Street analysts it needs the agreement not for short-term financial gains, but for long-term efficiencies.
Jerry Sullivan, president of UAW Local 600, said he understands why many members are opposed. "People have voted five times in the last five years on modifications and competitive operating agreements," Sullivan said. "If you talk to people, they say 'I am tired of it.' "