UAW and Ford Reach Tentative Agreement

The United Auto Workers Union disclosed Saturday that it has managed to reach a tentative four-year contract with Ford Motor. Unlike other U.S. automakers like Chrysler and General Motors, Ford was avoided a potentially crippling strike.

Ford, which is currently in dire financial straits is the last U.S. automaker to reach an agreement with the UAW. President of UAW, Ron Gettelfinger said, “Our team is proud of each and every negotiator because they have encouraged Ford to invest in product and people while addressing the economic needs of our active and retired members.”

The agreement is momentous given the fact that Ford has to close plants and cannot provide a lot of security going forward in terms of jobs. Union leaders will now have to sell the contract to Ford workers, who are wary about their future. Fortunately for them, the proposed contract still has to be ratified by UAW Ford local unions.

Joe Laymon, group vice president, Human Resources and Labor Affairs at Ford Motor Company said about the agreement, "Though we will not discuss the specifics of the tentative agreement until after it becomes final, we believe it is fair to our employees and retirees, and paves the way for Ford to increase its competitiveness in the United States."

No details of the deal have yet been released, but it is expected to be similar to the deals at G.M. and Chrysler. The aim of the union was to secure new products and investment, enhance job security and protect seniority.

Founded by Henry Ford and incorporated in June 16, 1903, Ford is based in Dearborn, Michigan, a suburb of Detroit, and is the world's third largest automaker based on worldwide vehicle sales. So much so, Henry Ford's combination of highly efficient factories, highly paid workers, and low prices revolutionized manufacturing and came to be known around the world as Fordism by 1914.

The only constant thing, as they say, is change. So have Ford’s fortunes changed. The besieged automaker lost $12.6 billion last year and its car and truck sales have plummeted. The company is in the middle of a revamping plan that calls for cutting 44,000 salaried and hourly jobs.