Ford, UAW Agree to Labor Contract

Ford and the United Auto Workers have reached a tentative labor accord, officials said Tuesday, completing a round of union concessions that began earlier this year during the near-collapse of the U.S. auto industry.

The union had previously made concessions to General Motors and Chrysler as those companies slipped into bankruptcy proceedings.

The revised Ford deal, which must still be ratified by workers, gives the automaker a similar arrangement to those of its major U.S. competitors, sources close to the negotiations said.

The agreement "would help Ford improve its current and long-term competitiveness in the United States," Joe Hinrichs, Ford's head of labor relations, said in a statement.

A council of UAW officials approved the agreement Tuesday, the union said.

"This agreement is another step in meeting the challenges of a very difficult time in the U.S. auto industry, and we look forward to presenting it to UAW Ford workers," UAW President Ronald A. Gettelfinger said in a statement.

The details of the agreement were not officially disclosed. But according to sources, among the key concessions from the union are a commitment not to strike on wage and benefits until 2012, a wage freeze on entry-level workers, and a relaxation in work rules to allow employees to perform a wider variety of tasks.

The sources spoke on the condition of anonymity because the agreement has not yet won ratification.

Gary Chaison, a professor of labor relations at Clark University, said the most troubling concession for union members is the commitment not to strike until 2012.

"Workers understand that they have to take cuts in bad times," he said. "But the loss of the strike option makes them wonder if, when times get better, they will lose the power to recoup their losses."

Though the agreement requires union concessions, it does give full-time workers a one-time $1,000 bonus. The award is called a "quality and productivity" bonus, but some regard that element as a sweetener offered to encourage passage of the agreement.

Under the agreement, Ford also said it would commit new products to assembly plants in Ohio, Michigan, Kansas City and Chicago.

The union indicated that another part of the agreement's appeal is that it helped protect retirees.

"With the current proposals, we have protected our retirees and won important additional product and investment commitments for our active members," said UAW Vice President Bob King, who leads the union negotiations with Ford.