Leaders of United Auto Workers (UAW) have voted to protest Ford Motor Co.’s (F) decision to restore some benefits for white-collar workers. They claimed that the automaker’s move would violate its contract with the union after the union workers had made concessions. However, a Ford spokesperson has revealed that the decision is a part of the company’s commitment to reinstate the white-collar benefits once its finances improved.
 
In December last year, Ford has announced that it will restore some benefits to white-collar workers, which include merit raises. In the third quarter, the automaker restored tuition reimbursement and 401-K retirement savings plan for employees, both of which had been withdrawn when the company was in the midst of a financial crisis.
 
An increasing tension between Ford and the UAW members came to the fore when some members of the union declined to ratify the modifications to their 2007 labor contract. Gary Walkowicz, a member of the bargaining committee at the Dearborn Truck Plant in Michigan, and six other plant leaders had signed a letter to employees urging them to vote against the agreement as it would require too many concessions and would limit the workers’ right to strike.
 
In November, Ford workers had again voted down a concessions contract negotiated by Vice President Bob King by a margin of 70%. It was the first rejection of a national auto contract recommended by the UAW since 1982 and at Ford since 1976.
 
UAW has stated that 70% of its membership in production and 75% in skilled trades voted against the agreement. The opposing members belonged to three of Ford’s largest plants in the U.S. – the Dearborn Truck Plant, Romeo Engine Plant and UAW Local 862 representing the Louisville Assembly Plant and the Kentucky Truck Plant.
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