NOVEMBER 2007 UAW FORDREPORT - uaw892.org

1 NOVEMBER 2007 The 2007 UAW Ford National Negotiating CommitteeUAW FORDREPORTHuge challenges,huge victoriesUnprecedented product and invest-ment guarantees in Ford manufactur-ing plants. Tens of thousands ofUAW Ford jobs protected; helps main-tain manufacturing base to sup-port our on outsourcing. Fordalso agrees to insource more than1,500 UAW jobs, and to evaluate anadditional 1,700 jobs for rights protected for cur-rent and future UAW gains total $12,904 for atypical UAW Ford assembler duringthe four-year include a $3,000 signing bo-nus, two 3 percent lump sums and one4 percent lump protection formulais maintained. Under terms of the 2005 Memorandum of Understanding andthe proposed agreement, a portion ofCOLA will be diverted to fund activeand retired health health care main-tained for active to pay $ billion for retireehealth care, including $ billion toestablish an independent VoluntaryEmployee Beneficiary Association(VEBA) trust.

2 Company also contrib-utes $ billion in pre-VEBA costs forretiree health pension benefits boosted,plus lump sums for current and safety protections im-proved, including enhanced ergonom-ics protection, additional monitoringfor exposure to metalworking fluids,improved training opportunities andcoordination of research trades gains 20 cents-an-hour tool allowance, $20 million tooland die investment in Dearborn, UAW negotiators at Ford facedenormous challenges during 2007 negotia-tions because of the state of the auto in-dustry as a whole and declining market shareat the four years since our last contractwas negotiated, the market share of the do-mestic auto industry fell from 62 percent to52 percent. During the same period, Ford smarket share dipped from percent percent. Ford workers know firsthandhow devastating this has been on workers,families and their communities.

3 Our bargain-ing committee made addressing jobs, se-niority, product and investment priority is-sues in this set of we are painfully aware, in 2006 Fordlost $ billion and Ford management mort-gaged all the company s assets to raise $ for a massive restructuring. Fordworkers were asked to make huge sacrificesas we witnessed the closing of 10 plantsand the relocation of many this period, our union negotiateda special attrition program to assist our im-pacted members. While the attrition programmay have lessened the impact for some work-ers, it strengthened the resolve of our bar-gaining committee to focus on job security. Our bargaining committee came throughfor our active and retired members, saidUAW President Ron Gettelfinger. Our teamis proud of each and every negotiator be-cause they have encouraged Ford to investin product and people while addressing theeconomic needs of our active and retiredmembers.

4 Our goals for this contract were to winnew product and investment, to enhancejob security, protect seniority and protectour retirees, said UAW Vice PresidentBob King. We made progress in all theseareas. The proposed agreement delivers un-precedented product and investment guar-antees specifying work to be performed atFord manufacturing facilities through thelife of the agreement and/or through spe-cific product lifecycles. The commitmentscover Ford assembly, stamping, engine,transmission, axle and components agreement also includes a mora-torium on outsourcing, a commitment toinsource over 1,500 new jobs to UAWFord facilities, and an agreement toevaluate 1,700 additional jobs proposed contract also deliverseconomic gains for our active and re-tired members, protects health care foractive and retired members, and renewsour commitment to safety in the has agreed to contribute $ bil-lion to secure retiree health care for cur-rent and future UAW retirees for years tocome, including $ billion to establisha Voluntary Employee Beneficiary Asso-ciation (VEBA).

5 We also agreed to a newwage for entry-level workers, including apromotion process by seniority which will allow these workers to reachfull traditional believe this contract lays the po-tential for renewed success for UAW mem-bers and Ford Motor Co. The members ofthe UAW Ford National Negotiating Com-mittee are proud to recommend it to youfor Ford Bargainers PreserveJobs, Protect Wages and BenefitsNew Contract Protects Wages,Provides Four Lump SumsThe proposed agreement protects thewages of UAW hourly workers at Ford,and provides four lump sum payments,one in each year of the Tot al GainsTotal economic gains from the pro-posed agreement add up to $12,904 for atypical Ford assembler, based on a stan-dard 2,080-hour year and 10 percent over-time. That figure includes the $3,000settlement bonus, performance bonusesof 3 percent, 4 percent, and 3 percent,and projected cost-of-living adjust-ments, after andPerformance BonusesUAW-represented Ford workers, in-cluding long-term temporary workers,who are on the active roll on the effec-tive date of the agreement, will receivean up-front settlement bonus of $3, on pre-retirement leave, in pro-tected status, on temporary layoff, onFamily and Medical Leave, or those onleave of absence beginning not earlierthan 90 days prior to the effective dateof this agreement, are also eligible.

6 Thesettlement bonus will be paid in the sec-ond pay period following official notifi-cation of the agreement s additional bonuses will be paidin the second, third and fourth years ofthe agreement. In October 2008, UAWFord workers with seniority as of , 2008, will receive a lump-sum perfor-mance bonus equal to 3 percent of quali-fied earnings (including base wages,COLA, overtime, shift and seven-dayoperator premiums, call-in pay, vacation,holiday and other paid time off) over thepreceding 52 pay periods. In October2009, workers with seniority as of , 2009, will receive a lump-sum bonusequal to 4 percent of qualified final performance bonus, equal to 3percent of qualified earnings, will be paidin October 2010, to workers with senior-ity as of Sept. 20, $ $ $ $ $ $ $ $ $ $ $ $% ,3$000,3$)%3(sunoBecnamrofreP8002rebmetp eS701,2$954,2$)%4(sunoBecnamrofreP9002re bmetpeS628,2$592,3$)%3(sunoBecnamrofreP0 102rebmetpeS431,2$684,2$nodesabstnemtsuj daALOC detcejorphtiw,emitrevo%01sulpraeyruoh-08 0, AllowanceThe proposed agreement maintains theexisting COLA formula, based on theCPI-W for all items less medical care.

7 Asof the effective date of the agreement, $ the current $ COLA float will befolded into base wage rates. The remain-ing 10 cents will be the initial COLA 2 cents quarterly diversion agreedto in the 2005 UAW-Ford health caresettlement agreement will continue, andbe made permanent. An additional 4 centsProfit Sharing MaintainedThe UAW Ford profit-sharing for-mula will continue unchanged, and con-tinue to make graduated paymentsbased on Ford' s addition, our bargaining team ne-gotiated an expanded definition of theprofits to be included in the formula. Thedefinition was clarified to ensure that itwill include any potential income result-ing from the establishment of an indepen-dent VEBA trust for retiree health Motor Credit Co., however, willno longer be included in the profit-shar-ing quarter will be diverted to fund thenew VEBA that will secure lifetime healthbenefits for current and future final 4 cents per quarter will be di-verted to defray the cost of health carebenefits for active workers.

8 These di-versions will be taken in the order a quarterly COLA adjustment is lessthan 10 cents, the company will not havethe right to make up the difference infuture quarters. Additional diversions totaling 5cents will be taken until the cumulative17 cents in diversions agreed to underthe 2005 health care settlement isreached. Should the timing of these di-versions, which began earlier at GMthan at Ford, lead to a disparity in COLA with GM, additional diversions of nomore than 2 cents will be taken until par-ity is onOutsourcingExcept for certain actions alreadyidentified, the company has agreed to atotal moratorium on new outsourcing ofUAW Ford work from UAW Ford facili-ties through the term of this moratorium will protect currentUAW jobs and allow UAW Ford work-ers to focus on winning new work forour Closing andSale MoratoriumFord has agreed that it will not close,idle, nor partially or wholly sell, spin off,split off, consolidate or otherwise disposeof, in any form, any plant, asset or busi-ness unit of any type beyond those whichhave already been identified.

9 Three facili-ties have been identified by Ford as ex-empt from the plant closing moratorium:Twin Cities Assembly, Cleveland Castingand Batavia WinsProduct and Investment Guaranteesin Manufacturing PlantsUnion Has Voice in FordDecision-MakingAfter years of watching the companylose market share and seeing our commu-nities lose good-paying manufacturingjobs, UAW negotiators made it a top pri-ority to ensure that UAW members haveinput into company the first time ever, the union wonagreement that the vice president and di-rector of the UAW National Ford Depart-ment will serve as a member of thecompany s Manufacturing OperatingCommittee, where critical decisions are madeabout current operations and future prod-uct. This will ensure that UAW Ford work-ers have a seat at the table during discus-sions about the future of Ford Motor key goal for UAW bargainers dur-ing these negotiations was to retain andexpand the employment available toUAW members at Ford s succeeded in winning unprec-edented guarantees to allocate specificproducts to UAW Ford assembly, stamp-ing, engine, transmission axle and com-ponent New InvestmentsThe UAW won commitments fromFord to build five new flexible bodyshops in UAW Ford assembly plants, acommitment to invest $200 million in newtechnology and equipment in UAW Fordstamping plants, a $20 million tool and dieinvestment in Dearborn, Mich.

10 , and sub-stantial new investments in UAW Fordpowertrain a result of this agreement, severalFord manufacturing facilities that werepreviously identified for closure by thecompany will remain open. UAW nego-tiators were able to win one-year exten-sions for two plants slated for closure Twin Cities Assembly and groundbreaking product andinvestment commitments, along with amoratorium on outsourcing and anagreement to insource new work, willprotect the jobs of tens of thousands ofUAW workers and will help to sustainFord as a high value-added manufac-turer with a strong base of employmentand production in the United addition, these commitments willhave a positive effect on the employ-ment of thousands of workers at relatedsupplier plants and will help maintainthe contribution of Ford facilities to thelocal and regional economies in whichthey are Commits toInsourcingIn response to our bargaining team sdemand that Ford take action to main-tain and expand its manufacturingbase, the company has agreed toinsource work totaling more than 1,500jobs during the life of the agreement.