Ford Motor Company and the United Auto Workers (UAW) Reach Contract Agreement

If the Ford Motor Company goes down, it is not going to do so without a long drawn out fight. In a world of government bailouts, Ford seems to be doing everything in its power to stay afloat without any help from the government. Not only is Ford the only US car manufacturer to not take Federal Aid thus far, but it is also the first to reach an approved contract agreement with the United Auto Workers (UAW). The new contract sees wage freezes as well as cuts to benefits all in an effort to try and keep the American car company competitive with foreign car companies (source: news.yahoo.com).

In a huge show of support, Ford says that 59 percent of production workers and 58 percent of skilled-trades workers voted for the concessions. The deal will also see Ford contributing stock to the union-run trust for retiree health care. Ford states that the deal represents a total commitment of all who are employed by the auto maker to keep the company going in these tough economic times (source: news.yahoo.com).

General Motors (GM) and Chrysler are expected to use the details of the Ford deal as their guidelines when negotiating with the UAW. The two companies are required by the government to bring their labor coast down to a comparable level to that of foreign companies in order to receive more aid from the government. The companies are seeking an additional $21.6 billion in government aid and must show their progress by March 31^st if they hope to secure further funds. There is no word as to the progress of the talks between the UAW and GM or Chrysler, but time is starting to run thin for the two car companies (source: news.yahoo.com).

While it is not known how much of a direct impact the agreement will have for Ford, it is certainly a good place to start. Ford has truly gone above and beyond the rest of the car companies in trying to save its own skin. The fact that Ford has not touched any federal money as of yet speaks to the willingness and eagerness of both the employees and management alike to keep the company alive. For now Ford will do what all other car manufacturers are doing both here and abroad and just try to weather the tough economic storm and wait for the recovery that is sure to follow; though it is anyone's guess as to when that will happen (source: news.yahoo.com).