Ford Faqs

The United Auto Workers(UAW)have come to terms with GM’s President, Ron Gettelfinger, and are now ready to get on the same page with Ford Motor Co. and Chrysler. They believe that they have the ability to reach a suitable agreement all at once.

The GM agreement, which includes a union fund that would take future health-care obligations off the automaker’s books, may serve as a pattern. The UAW indefinitely extended contracts at Ford and Chrysler on Sept. 13 to focus on Detroit-based GM, with the idea of extending terms to the other automakers.

All three U.S.-based automakers are looking to pare labor costs, which they have said are $25 to $30 more an hour in wages and benefits than those at U.S. plants operated by Toyota Motor Corp. and other competitors. GM, Ford and Chrysler lost a combined $15 billion last year as Toyota and Honda Motor Co. took away U.S. market share. GM is the largest U.S. automaker by annual sales. Ford is second and Chrysler fourth, behind Toyota.

The tentative agreement between GM and the UAW came after a two-day strike. The accord, subject to a ratification vote by union members at the automaker, would take $50 billion of future health-care obligations off GM’s books.