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11 October, 1999The UAW and Ford agree on pact and compromise on Visteon spin-off.
USA: With the tentative agreement reached this past weekend at Ford Motor Co., the United Auto Workers will have concluded its contract negotiations with the "Big Three" U.S. automakers. The settlement thus averts a costly strike with Ford's 101,000 UAW workers.
Though details of the tentative new four-year agreement are being withheld until ratification meetings have taken place, it is thought that the settlement carries most of the major items of the contracts negotiated earlier with the other two major automakers, General Motors and DaimlerChrysler. Amongst these are: 3% annual wage rises, a one-time signing bonus of US$1,350, cost-of-living payment with adjustment for inflation, and improved pension benefits.
A sticking point with the Ford negotiations was over the possible spin-off by the company of its parts unit Visteon Automotive Systems, which employs 23,500 UAW workers. It is believed that the new pact includes UAW backing for the potential spin-off in exchange for job and benefits guarantees. Current UAW employees at Visteon would remain Ford employees for life, with the option to return to a Ford plant, and new Visteon employees would have a contract patterned on Ford's.
Though details of the tentative new four-year agreement are being withheld until ratification meetings have taken place, it is thought that the settlement carries most of the major items of the contracts negotiated earlier with the other two major automakers, General Motors and DaimlerChrysler. Amongst these are: 3% annual wage rises, a one-time signing bonus of US$1,350, cost-of-living payment with adjustment for inflation, and improved pension benefits.
A sticking point with the Ford negotiations was over the possible spin-off by the company of its parts unit Visteon Automotive Systems, which employs 23,500 UAW workers. It is believed that the new pact includes UAW backing for the potential spin-off in exchange for job and benefits guarantees. Current UAW employees at Visteon would remain Ford employees for life, with the option to return to a Ford plant, and new Visteon employees would have a contract patterned on Ford's.