AFSCME 3357-HOF'S BLOG

Tentative Ford Deal

Late Friday, Ford and the UAW came to tentative contract terms. The deal is similar in concept to the Chrysler and GM deals. The contract includes a VEBA and a two-tier wage structure. On balance, the UAW may have given up more concessions to Ford, however, Ford (supposedly) agreed to keep open two plants that were originally slated to close.

There is an interesting difference in the VEBA. Ford is only putting 40% of the funds in cash, compared to 54% in the GM deal and 59% for Chrysler. Ford agreed to invest the remainder of the cash in its factories to make them capable of producing more than one model. Corrected 12/47 AM 11/5/2007
Source: Detroit News