Posted: Friday, 30 October 2009 8:13PM

UAW Says No New Ford Deal If Contract Fails



DETROIT (Reuters) - The United Auto Workers union has no plans to seek a new vote if workers reject a tentative agreement with Ford Motor Co, or to resume talks with the automaker, UAW President Ron Gettelfinger said on Friday.

The tightening of tensions over the labor contract in the United States came as leaders of the Canadian Auto Workers union announced a tentative pact with Ford that gives workers production commitments in exchange for concessions.

The CAW agreement, which is up for ratification this weekend, would freeze wages for some 7,000 Canadian workers into September 2012 in exchange for protecting some factory jobs in Canada.

Momentum has been building among UAW local units to reject a proposed agreement with Ford announced earlier in October to change the 2007 contract and bring the automaker's labor costs in line with rivals General Motors Co and Chrysler.

UAW members at several plants have rejected concessions and a handful have supported the deal, which would give product commitments and a $1,000 one-time bonus in exchange for a "no-strike" provision on wages and benefits and other cuts.

The deal would be the second major revision of the four-year contract this year. The UAW would remain free to strike on issues other than wages and benefits. The UAW gave GM and Chrysler the "no strike" provision in their bankruptcies.

Voting was continuing Friday at some locals and others were expected to complete votes over the weekend. Approval of the contract requires a majority of votes cast by the roughly 41,000 U.S. factory workers represented by the UAW.

"I trust our membership," Gettelfinger said on the sidelines of an event in Detroit.

He said he was hopeful workers would ratify the proposed agreement and expected to release the results on Monday.

Gettelfinger said he did not believe that Ford's relative health had created opposition to the contract changes. Ford reports third-quarter results on Monday.

"We're looking for Ford to have a good quarter when they announce their results," Gettelfinger said. "We knew that going into it. We know we're looking long-term for product commitment to give us long-term job security."

A Ford spokeswoman declined to comment on Gettlefinger's remarks.

Ford is the only large U.S. automaker to avoid bankruptcy in 2009, but has posted net losses totaling $30 billion from 2006 through 2008 and remains saddled with a much heavier debt load than GM or Chrysler.

Gettelfinger and CAW President Ken Lewenza both have cited Ford's heavy debt load as a factor in reaching the concessions agreements with the automaker.

"Ford is not in good financial shape," Lewenza told reporters at a briefing in Toronto on Friday.

GM and Chrysler in their restructurings supported by the U.S. government both reached deeper concessions with the UAW than Ford. Ford has said that it needs the further cuts from the UAW to avoid a cost disadvantage over the long term.

The UAW proposal was rejected overwhelmingly by workers at assembly plants in Kansas City, Missouri, and Flat Rock, Michigan. It had narrow support at a local representing workers at its Michigan and Wayne assembly plants near Detroit.


Story Copyright 2009, Reuters Photo Copyright 2009, Getty Images

Five Americans Charged With Terrorism In Pakistan


A Pakistani court formally charged Wednesday five young Americans of plotting terrorism in the country.

First Of Several Job-Creation Bills Clears Congress


A package of tax breaks and highway spending cleared the Congress on Wednesday.

U.S. Puts Brakes On "Virtual" Border Fence


The U.S. government is pulling $50 million in funding from a problematic "virtual fence" meant to secure stretches of the Mexico border.

Poll: California Governor's Race Tightens


Ex-Governor Jerry Brown, the presumed Democratic nominee in California's gubernatorial race, has seen his lead over Republican front-runner Meg Whitman evaporate.

Holder Defends Criminal Trials For 9/11 Suspects


Eric Holder on Tuesday defended plans to prosecute some terrorism suspects in traditional criminal courts.

U.S. Air Travelers Complain About Body Scans


Hundreds of air travelers have lodged complaints over use of full-body security scanners in the past year.

Honda To Recall 412,000 Vehicles In U.S. For Brakes


Honda will recall about 412,000 vehicles in the United States to address a brake pedal issue.

NOAA Warns Of Spring Floods In Upper Midwest


The NOAA warned Tuesday of "historic" spring flooding in the Upper Midwest.
The RSC Prepares For All Eight History Play Performances
LONDON - MARCH 21: Construction workers installing the proscenium tower for the RSC to perform the History Cycle in the Roundhouse on March 21, 2008 in London, England. The Royal Shakespeare Company are preparing to perform all eight History Plays at the

$17.5 Billion Jobs Bill Nears Final OK


The first of several Democratic job-creation efforts cleared a procedural hurdle in the Senate on Monday.

Recession Left "Walking Wounded" Workers


Many workers around the world have given up hopes of advancing in their jobs, but the bad economy is keeping them from finding new ones.

Toyota Casts Doubt On "Runaway" Prius Claim


Toyota said on Monday it had found no evidence to support the driver's account of a widely publicized "runaway" Prius incident in California.

U.S. To Roll Out Major Broadband Policy


Regulators will announce a major Internet policy this week to revolutionize how Americans communicate and play.

Credit Card Data Signals Consumer Stress Easing


Credit card delinquency rates slipped at three major lenders last month, suggesting fewer Americans are falling behind on bills.

Court Rules Again Against Vaccine-Autism Claims


Vaccines that contain a mercury-based preservative called thimerosal cannot cause autism on their own, a special U.S. court ruled on Friday.

No Explanation Yet For Prius California Claim


Safety investigators have found no evidence so far to support or disprove a California motorist's claim his Toyota Prius sped out of control on its own.