Monday, November 2, 2009

UAW workers stick it to Ford over changes.

Ford can't sustain itself if everyone else in the UAW system gets concessions and cuts. Ford's only crime here is they did not take a bailout.

—Ford Motor Co. will continue to seek changes to union work rules and consider changing plans to build certain models in union plants in the U.S. after the United Auto Workers union rejected contract changes that would have lowered the company's labor costs, people familiar with the company's thinking said.

The auto maker will continue talks with the union to find ways to cut costs, and may look at moving some production to lower-cost locations if it can't remain competitive in the U.S., these people said.

The changes would have given Ford virtually the same concessions that the union has extended to General Motors Co. and Chrysler Group LLC, and had been approved by the union's leadership. But they were defeated in ratification votes by the rank and file.

Although some locals were still voting Sunday, the UAW leaders have accepted the defeat, according to three union officials who asked not to be identified since they don't officially speak for the UAW.

The rejection is a setback for Ford. Although the company is expected to report relatively strong third-quarter earnings on Monday, it and other auto makers are still struggling with depressed levels of sales in the U.S., Europe and other key regions of the world.

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