UAW Pres. Bob King shakes hands with Ford Chairman Bill Ford as negotiations open in July.
The United Auto Workers union plans to make Ford Motor Co. the focus of the next round of negotiations in its drive to fashion new contracts with domestic automakers as talks with Chrysler are placed on hold.
Chrysler officials have confirmed that the UAW has extended the maker’s contract until October 19th. Earlier this month, as the September 14th deadline loomed, there were signs Chrysler might, in fact, be the maker likely to come up with the first settlement with the UAW. But a last-minute snag appeared to scuttle the talks and the union went on to reach agreement with General Motors.
“We look forward to working with the UAW on a new tentative agreement that is fair to our employees and allows Ford to become more competitive,” Ford said in a statement late Wednesday.
The UAW revealed the details of its tentative agreement with GM earlier this week. The contract includes a $5,000 signing bonus, inflation protection worth up to $4,000 over the next four years, a raise of about $3 an hour for second-tier workers and the creation of as many as 6,400 new UAW jobs. The union expects to have the ratification process completed by Sept. 29.
Meanwhile, the UAW and Chrysler have agreed to an additional extension of the current collective bargaining agreement while continuing to negotiate toward a new contract. However, the UAW had been expected to turn to Chrysler next since the two sides had engaged in intensive negotiations right up until the original Sept. 14 deadline, when insiders had suggested the two sides were close to a settlement.
But a settlement failed to materialize and Chrysler CEO Sergio Marchionne subsequently released a letter blaming UAW President Bob King with meeting a critical meeting that could have resolved the talks.
The extension suggests the UAW and Chrysler have hit a glitch in their discussions. The company has been pushing the union for changes in health plans that are not included in the GM agreement. Chrysler executives fear the continuing escalation of health care costs could undermine the automaker’s comeback. In addition, the company has said it can’t afford the $5,000 signing bonus that’s part of the UAW’s tentative settlement with GM.
Meanwhile, Moody’s Investors Service announced it was downgrading Fiat’s credit rating because of the potential problems inherent in the company’s alliance with Chrysler.
As in years past, the UAW aims to create a so-called “pattern” contract at Chrysler and Ford that carries over key principles of the GM agreement. But Ford has also indicated it may seek changes that reflect its own specific needs and conditions. The maker notably was not granted the same level of concessions, in 2009, that UAW workers approved for the bankrupt GM and Chrysler.
Michele Martin, UAW spokeswoman, said the UAW will not provide further comment regarding negotiations or speculate about timing or the potential outcome of the negotiations at this time.