United Auto Works, Ford Close in on Contact Changes

The United Auto Works and Ford Motor Co. have finally closed in on contract changes after six weeks of discussion.

Representatives from both entities said that the new contract agreement will ensure good competition among automakers in the United States and wider range of workers’ provision.

Ford Motor Co. on Friday said that it looking forward to close down changes in agreement with United Auto Works (UAW) in order to ensure competitiveness among automakers in the United States.

However, despite the reported progress between the two entities, Ford spokesperson Marcey Evans said that they planned to keep the matters private, saying that “we have nothing to announce about the development”.

Meanwhile, a person familiar to the issue said that the deal is mainly focused on the revisions of the contract, which Ford, along with GM and Chrysler, signed in December 2007.

The source added that the six-week-old discussion aimed to make the union sign a concession with the automaker following a downfall of the US auto industry during the recession. It was learned the UAW have already agreed with both GM and Chrysler’s proposal.

But the UAW declined to further comment of the reports. It only disclosed several approved proposals by GM and Chrysler like no-strike clause for the next deal, fewer skilled-trades classifications, and fixed wage for new hires.

However, the UAW elaborated that the new contract changes with Ford will address the workforce cuts approved by the union to the automaker’s cross town rivals.

According to the reports, the new deal with the three Detroit-based automakers will ensure flow of business among the manufacturers avoid monopoly of workers.


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