Ford reaches agreement with UAW

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Calibri","sans-serif"; mso-fareast-font-family:Calibri; mso-bidi-font-family:"Times New Roman";} Ford Motor Co and the United Auto Workers union (UAW) have reached agreement on a range of measures including a wage freeze, eliminating cost-of-living increases and some paid holidays and bonuses.   The current deal with the UAW is one of several steps Ford has taken to cut costs as part of a turnaround plan it initiated four years ago. Under the deal, workers have also accepted a new funding arrangement for a health care trust.   Ford is the first US automaker to come to an agreement with the UAW, but rivals GM and Chrysler are under extreme pressure to do similar deals.   All US auto manufacturers have struggled with a slump in demand as the economic crisis continues, but Ford is the only one of the ÔÇ£Big ThreeÔÇØ that has not asked the US government for any emergency loans, claiming it currently has enough money to survive the downturn, although the deal with the UAW is necessary to address falling revenues as car sales collapse.   GM and Chrysler have already received $17.4 billion between them in federal support, and have asked for a further $21.6 billion. Agreements with the UAW are required by the bailout packages.   The union said 59 percent of FordÔÇÖs production workers and 58 percent of skilled-trades workers voted in favor of the agreement. "We are facing an unprecedented loss of sales and revenue at Ford," said UAW Vice-President Bob King.   "The voting results show that our members are prepared to make painful sacrifices in order to be part of the solution to the problems facing Ford and the US auto industry."   The deal will also save Ford billions of dollars in health care costs, as it will now pay up to half of its obligation to a trust fund for retired workers in stock rather than cash.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *