UPDATE 1-Ford, UAW reach deal to trim labor costs

[OhioChick]

Source: Reuters

Tue Feb 17, 2009 7:51pm EST

DETROIT, Feb 17 (Reuters) - Ford Motor Co (F.N) has reached a deal with the United Auto Workers to reduce its labor costs in line with Japanese rivals and help it survive without government loans, the carmaker and union said on Tuesday.

Ford, which posted a record $14.6 billion loss in 2008, said the UAW deal includes changes to labor costs, benefits and operating practices. It is contingent on Ford resolving the funding of a union-aligned trust for retiree health care.

Ford has sought to distance itself from U.S. rivals General Motors Corp (GM.N) and Chrysler , which have received $17.4 billion of government loans and on Tuesday requested nearly $22 billion more to support turnarounds.

However, it has been the needs of Ford's rivals that helped propel further cost cuts for the automaker. The UAW also reached "tentative understandings" with GM and Chrysler.

As part of their government bailouts, GM and Chrysler are required to make labor costs competitive with the U.S. operations of Japanese automakers Toyota Motor Corp (7203.T), Honda Motor Co Ltd (7267.T) and Nissan Motor Co Ltd (7201.T).



Read more: http://www.reuters.com/article/marketsNews/idUSN1739764920090218

[muntrv]

1. How about trimming executive costs, right up to the CEO?

[madrchsod]

2. once again america racing to the bottom

i remember when america lead the world with wages,benefits,and standard of living. those days are long gone and america has become a nation of children who run in fear of tomorrow. children who sleep with the light on because they are afraid of the shadows.

i think of all the men and women who built this country with love, sweat, and determination. those who sacrificed their bodies and their lives so their children and future generations would have a better life that they did....thank god those people are not alive to see what has happened to their children and grand children.


Carl Sandburg would`t recognize america

[sufrommich]

3. Well said,madrchsod

:-(