Ford Motor Co, seeking labour concessions granted to the US rivals, is working to bridge a gap with the United Auto Workers amid union resistance to a second round of 2009 givebacks, people familiar with the talks said.
Ford’s labour chief, Joe Hinrichs, was told by UAW officials when bargaining began on August 25 that members would reject further concessions, said two of the people, who asked not to be identified because the sessions are private. Senior negotiators held a daylong meeting yesterday, a third person said.
“Their differences are significant and difficult, but they’re talking,” said Harley Shaiken, labour professor at the University of California at Berkeley. “A long discussion means you have something to talk about; stalemates tend to be short.”
Ford, the only US automobile maker to avoid bankruptcy, is trying for parity in labour costs with General Motors Co and Chrysler Group LLC.
To help those companies restructure, the UAW agreed to a six-year pay freeze for entry-level employees, a no- strike accord until 2015 and fewer union job classifications. The UAW has been reluctant to grant more concessions to Dearborn, Michigan-based Ford after a March accord to give up annual bonuses and cost-of-living increases and accept reduced layoff benefits. The company said the changes will produce $500 million in annual labour savings.
“We have a history of a constructive relationship with the UAW,” said Marcey Evans, a Ford spokeswoman.
“We fully expect to reach an agreement that’s mutually beneficial to the company and to our employees.”
Evans declined to comment on the specifics of discussions with the union. A call to Roger Kerson, a UAW spokesman, wasn’t returned. Ford has 41,000 hourly workers in the US. After posting a record $14.7 billion loss in 2008, Ford said in July it had second-quarter net income of $2.26 billion after an accounting gain.
