FORD MOTOR CO: Additional Job Cuts To Be Sought As UAW Contract Talks Resume

[Purveyor]

Source: Associated Press

October 5, 2007

DETROIT - Ford Motor Co. will seek further cuts in its U.S. hourly workforce when it officially returns to the bargaining table with the United Auto Workers, according to officials from both sides who have been briefed on the talks.

The two officials, who didn't want to be identified because the talks are private, said Ford likely would seek another round of early retirement and buyout offers to get the cuts.

The reduction would be in addition to the 27,000 hourly workers who left the company under similar programs offered last year.

Several industry analysts say it is imperative for Ford to close more factories and further reduce its workforce.



Read more: http://www.chicagotribune.com/business/chi-fri_brief1_1005oct05,0,3498735.story

[Purveyor]

1. Related: GM Deal Clears Way For Thousands Of Lower-wage Hires

DETROIT – General Motors Corp will be able to replace roughly a quarter of its factory workers with lower cost hires under the tentative contract reached last week with the United Auto Workers union.

The tentative contract identifies “in excess of 16,766” union-represented jobs that could be filled with new hires at roughly half the cost of current workers, according to a text of the document.

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If approved, the deal would allow GM to slash the labor cost advantage enjoyed by Toyota Motor Corp and the two other Japanese automakers operating production plants in the United States.

The average UAW-represented GM assembly line worker makes just under $28 per hour now before health-care and other benefits that take total hourly labor costs to $73, the automaker has said.

By contrast, Toyota's average hourly cost for workers at its U.S. plants was under $48 per hour including benefits.

GM and other U.S. automakers have argued that they need more flexibility to bring in lower cost temporary hires and the ability to fill janitorial and other jobs in their plants below the UAW-mandated wage scale.

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http://www.signonsandiego.com/news/business/20071004-0733-gm-uaw-.html