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2011 UAW Ford Contract Summary (Highlights)

2011 UAW Ford Contract Summary (Highlights)

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Published by: bobology on Oct 04, 2011
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12,000 jobs, $16 billiono investment to produce new models and upgraded vehiclesand components by 2015, o  which, $6.3 billion will beinvested directly into retoolingand upgrading U.S. plants, withdetails on page 2.$6,000 lump sum uponratifcation or employees withone or more years o seniority or $5,000 or employees withless than one year.$1,500 Ination Protectionlump sums in 2012, 2013, 2014and 2015.New annual proft sharingprogram with greater trans-parency and an averagepayment o $3,700 or 2011profts based on Q1 and Q2reported fgures. Second twoquarters o 2011 proft paid inMarch 2012.$250 yearly competitiveaward paid in December.Entry-Level wages togrow to $19.28 by end o theagreement.Unlimited $20 o ce visitsand annual physicals.SUB pay replenished.$50,000 bonus or eligibleproduction-employees whoretire by March 31, 2012.$100,000 bonus or skilledtrades who retire by March 31,2012.Sourcing moratoriumremains intact.Reinstated pay-in-lieu vacation provisions.Maintained 2 paid amily days.
 We are proud o our union and the UAW Ford National Negotiating Committee. As the nation’seconomy remains stalled and uncertain, and its employment rate stagnates, we were able to win anagreement with Ford that will bring auto manuacturing jobs back to the United States rom China,Mexico and Japan. Tis agreement adds 5,750 new UAW jobs which means more than 12,000 new  jobs in total with jobs previously announced by Ford. Many o these jobs will be added by the end o 2012, and all will be added during the term o the new contract. Te tentative agreement includes $16 billion to produce more new and upgraded vehicles andcomponents by 2015, o which, $6.3 billion will be invested directly into retooling and upgrading plants.UAW members sacrifced when the company was struggling and this agreement ensures that ourmembers will now share in Ford’s prosperity. While new jobs, investment and new products or ourplants are the most important components o a secure uture or our members, we were also able tomake important gains in both income and benefts in this tentative agreement.In terms o economic security, we increased Entry-Level wages to $19.28 over the term o theagreement. We also won a $6,000 Settlement Bonus or workers with a year or more seniority or $5,000 or those with less than a year, and $7,000 in Ination Protection and Competitivelump-sum payments over the term o the agreement. Another important gain is the strongimprovements we made in transparency and simplicity in the proft sharing plan.In the area o health care benefts, when it seems like everyone in America is getting cuts inbenefts and paying higher co-pays and deductibles, we were able to maintain and improve on ourcurrent benefts. Most signifcant or our members, we were able to secure unlimited $20 doctor’so ce visits. As representatives o workers, we will always have some dierences with Ford management. Overand over, we reminded management that no one has a stronger sel-interest in the success andlong-term viability o the company than UAW Ford workers. CEOs come and go, oten with hugegolden parachutes, management comes and goes, stockholders come and go, but it is our UAW Ford members who are here or the long run and have the most at risk i the company ails. It is ourmembers who work the hardest every day making the best vehicles in the world. We are extremely proud o the job that was done by the entire UAW Ford National NegotiatingCommittee. We employed new strategies and tactics in these di cult economic times. Yourbargaining team ought successully not only to beat back the corporation’s attempt to weaken ourcontract, but also to win major improvements we all can be proud o. Tis document summarizes the tentative agreement the UAW has reached with Ford. Pleasereview it careully, and go to www.uaw.org to review the entire agreement. And we urge you to vote“YES” in avor o ratifcation.In solidarity,
A message to UAW members at Ford
The 2011 UAW Ford National Negotiating Committee
 Jimmy Settles, vice president and directorUAW Ford DepartmentBob King, presidentInternational Union, UAW
AAIWill balance out of Mazda 6 production. A new
exible assembly system toprovide a second source for the next Generation Fusion (which is currently builtexclusively in Mexico) will be installed and a second shift added. The plant alsowill receive the next generation Mustang. Total plant investment is $555M.Chicago AssemblyWill continue with Explorer and Taurus, including adding a third shift of productionand insourcing the police vehicles. Investment in the plant is $117M.Dearborn TruckThe next generation of the industry leading F-Series truck will continue at DTPafter $359M investment.Kansas City Assembly PlantThe Kansas City Assembly plant will grow with the North American introductionof the Transit Commercial Van, being insourced from Europe. To support thegrowth, an integrated stamping plant is being added to the site. A second shift ofF-series production is being added in 2012, and the next generation F-Series isawarded to the plant. Total investment on the site is over $1B.Kentucky TruckEnabling Ford’s Truck Leadership position is execution of the next generation Su-per Duty Truck and continuation of the Expedition and Navigator. The investmentof $621M includes adding a press line.Louisville AssemblyThe launch of the all new Escape in 2012 will be followed by the introduction ofan exciting new product. The popularity of the Escape and the addition of a newproduct will require a third shift of production. Total plant investment is $639M.Michigan AssemblyFord’s growth in the small car segment continues with the Focus Battery ElectricVehicle. The high mileage C-Max is being insourced from Europe and will featureboth hybrid and plug-in hybrid powerpacks. As the ever-popular Focus continues,a third shift of production is being added to meet market demand. Total invest-ment of $297MOhio AssemblyThe commercial vehicle portfolio is enabled by the insourcing of the MediumTruck and the frame assembly from Mexico, along with the insourcing of theMotorhome Chassis. The E-Series cutaway rounds out the line-up. Total plantinvestment of $128M.Twin CitiesAs previously announced, the Twin Cities Assembly plant will close with the bal-ance out of the Ranger at the end of 2011.
Work in-sourced from Mexico, China and Japan
$16 billion in investment and new products
 Your negotiating team has consis-tently heard our members demandingmore job security because membersunderstand that without product orour plants, our utures are not secure. Tis tentative agreement addsanother 5,750 jobs. Tese new UA jobs mean more than 12,000 new  jobs in total with jobs previously announced by Ford. Many o these jobs will be added by the end o 2012,and all will be added during the termo the new contract. Tese new jobs will be added to communities across America where people have beenstruggling to recover rom our nation’seconomic turmoil. Te UAW Ford proposed agreementalso includes $16 billion o investmentto produce new models and upgraded vehicles and components by 2015, o  which, $6.3 billion will be investeddirectly into retooling and upgradingplants. Many o the productcommitments in this agreement arerom vehicle manuacturing re-sourcedor in-sourced directly rom othercountries, including China, Japan andMexico. Just as important as the investmentcommitment is new contract languagethat gives our members a better chanceo competing or work with outsidesuppliers. Te new language, which will be closely monitored by the UAFord Department’s new AdvancedManuacturing and Sourcing team,strengthens our ability to compete orexisting and new work. Your negotiators also insisted and won agreement that the currentmoratorium on outsourcing o work rom Ford acilities be extended or thelie o this proposed agreement. Te ollowing chart details the new product and plant investment that wassecured in this tentative agreement.
Dearborn Engine PlantIn support of Ford’s leadership in fuel economy initiatives, incremental ca-pacity will be added to the plant for the 2.0L I4 engine. The idled side of theplant will be reopened to add the newly insourced F-Series Vehicle Person-alization Center as part of the $130M investment.Cleveland Engine SiteThe plant is awarded a new
exible small displacement engine assemblyline. The good news at the site continues with the announcement that athird shift of production is being added for the Duratec 3.5L/3.7L V6 en-gines. Total investment on the site is $278M. The 3.0L Duratec engine bal-ances out at Cleveland Plant 2 after a solid 18 year run.Lima Engine PlantThe popular Duratec 3.5/3.7L V6 continues and a new industry leadingsmall V6 will be added to the plant at an investment of $400M.Romeo Engine PlantTruck leadership is requiring the continuation of the 6.2L V8, a key enginein Ford’struck lineup. The 5.4L Supercharged engine gets upgraded toa 5.8L. The machining of 5.0L blocks continues and 5.0L connecting rodmachining is introduced. The 4.6L balances out after a very successful lifecycle. Total investment is $50M.Livonia TransmissionThe 6R product lineup continues with a substantial capacity increase, whilethe 4R line balances out. Plant investment is $192M.Sharonville TransmissionThe Gear Center of Excellence sees plenty of growth as the 6F, 6F-mid and6R all have increasing demand. The 6R140 transmission continues, andinsources an application for the Medium Truck. Plant investment is $220M.The FN gears and the 5R110 balance out.Van Dyke TransmissionThe HF35 transmission, insourced from Japan, is the
rst hybrid trans-mission produced at Ford. The 6F-mid and the 6F both will experience acapacity increase, and two new applications of the 6F-mid will be insourced.Total investment of $220M.RawsonvilleThe balance out of starters and coils enables the transformation of Raw-sonville by the insourcing of several products, including the 6R140 oil pumpfrom China, the HEV battery pack from Mexico, HF35 Kitting, and sequenc-ing for MAP and DTP. The continuation of the existing 6F35/50 Kitting,Carbon Can/Air Induction Assembly is included in the $53M investment.SterlingThe growth of Sterling business includes introduction of the rear drive unitused in the Edge, Escape, Fusion, MKZ, Flex, MKT and global productssuch as Kuga and Eco-Sport. The in-sourcing of the Transit axle assemblyand gear manufacturing, subsequent Rear Drive Unit capacity increase,and F-150 E-Locker Differential Assembly provide incremental growth. TheF-150, Super Duty, Mustang, Expedition and Navigator axles continue, theRanger axle balances out. Total investment of $141M.Woodhaven ForgeWoodhaven Forge is awarded the crankshaft for the small displacement V6engine, and will continue to forge their current line-up of 3.5L/3.7/5.4L/6.8Lcranks up to their max capacity. Total investment of $4M.

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