UAW: Economic Elements Of GM's Labor Deal Similar To Ford's
11 März 2009 - 7:15PM
Dow Jones News
A top United Auto Workers official said General Motors Corp.
(GM) will get many of the same concessions granted this week as
Ford Motor Co. (F) received, though some elements of GM's revised
labor deal will differ "drastically" from its rival.
In a letter sent to members this week, UAW Vice President Cal
Rapson said the Ford and GM deals are the same "in the area of
economics," which generally encompass wages and benefits.
Other elements, he said, will vary significantly. For example,
the terms under which displaced employees are moved into new jobs
also will differ, he said.
Ford announced Wednesday that it will trim its hourly worker
wage package - which includes benefits, bonuses and pensions - to
$55 from $60 an hour starting March 16 under a new accord with the
UAW.
The Dearborn auto maker needed the deal to remain competitive
with GM and Chrysler LLC, which are seeking major concessions from
the union and bondholders as they struggle to survive on government
loans. Ford hasn't asked for federal money.
GM and the UAW last month struck a tentative deal on revisions
to the 2007 labor deal, which includes concessions on wages, job
security provisions and work rules.
The deal, however, won't be complete until the two sides agree
on new terms that will help make it easier for GM to fund around
$20 billion in obligations to retired hourly workers in the form of
a trust known as a Voluntary Employee Beneficiary Association.
Members must then ratify changes.
Ford's hourly workers ratified changes to their contract this
week, which includes new terms for the company's VEBA.
The Ford deal also calls for a new buyout program which will be
launched April 1 and other changes such as Ford providing workers
undisclosed "financial incentives" to take yearly physicals as part
of a wellness program.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532;
sharon.terlep@dowjones.com
(Jeff Bennett contributed to this story)