november 2007 uaw fordreport - uaw892.org · november 2007 the 2007 uaw ford national negotiating...

NOVEMBER 2007

The 2007 UAW Ford National Negotiating Committee

UAW FORD REPORT

Huge challenges,huge victories

Unprecedented product and invest-ment guarantees in Ford manufactur-ing plants. Tens of thousands ofUAW Ford jobs protected; helps main-tain U.S. manufacturing base to sup-port our communities.

Moratorium on outsourcing. Fordalso agrees to insource more than1,500 UAW jobs, and to evaluate anadditional 1,700 jobs for insourcing.

Seniority rights protected for cur-rent and future UAW workers.

Economic gains total $12,904 for atypical UAW Ford assembler duringthe four-year agreement.

Gains include a $3,000 signing bo-nus, two 3 percent lump sums and one4 percent lump sum.

Cost-of-living protection formulais maintained. Under terms of the 2005Memorandum of Understanding andthe proposed agreement, a portion ofCOLA will be diverted to fund activeand retired health care.

Comprehensive health care main-tained for active workers.

Ford to pay $15.4 billion for retireehealth care, including $13.2 billion toestablish an independent VoluntaryEmployee Beneficiary Association(VEBA) trust. Company also contrib-utes $2.2 billion in pre-VEBA costs forretiree health care.

Future pension benefits boosted,plus lump sums for current retirees.

Health and safety protections im-proved, including enhanced ergonom-ics protection, additional monitoringfor exposure to metalworking fluids,improved training opportunities andcoordination of research efforts.

Skilled trades gains 20 cents-an-hour tool allowance, $20 million tooland die investment in Dearborn, Mich.

Our UAW negotiators at Ford facedenormous challenges during 2007 negotia-tions because of the state of the auto in-dustry as a whole and declining market shareat Ford.

In the four years since our last contractwas negotiated, the market share of the do-mestic auto industry fell from 62 percent to52 percent. During the same period, Ford’smarket share dipped from 18.9 percent to14.9 percent. Ford workers know firsthandhow devastating this has been on workers,families and their communities. Our bargain-ing committee made addressing jobs, se-niority, product and investment priority is-sues in this set of negotiations.

As we are painfully aware, in 2006 Fordlost $12.6 billion and Ford management mort-gaged all the company’s assets to raise $23.4billion for a massive restructuring. Fordworkers were asked to make huge sacrificesas we witnessed the closing of 10 plantsand the relocation of many workers.

During this period, our union negotiateda special attrition program to assist our im-pacted members. While the attrition programmay have lessened the impact for some work-ers, it strengthened the resolve of our bar-gaining committee to focus on job security.

“Our bargaining committee came throughfor our active and retired members,” saidUAW President Ron Gettelfinger. “Our teamis proud of each and every negotiator be-cause they have encouraged Ford to investin product and people while addressing theeconomic needs of our active and retiredmembers.”

“Our goals for this contract were to winnew product and investment, to enhancejob security, protect seniority and protect

our retirees,” said UAW Vice PresidentBob King. “We made progress in all theseareas.”

The proposed agreement delivers un-precedented product and investment guar-antees specifying work to be performed atFord manufacturing facilities through thelife of the agreement and/or through spe-cific product lifecycles. The commitmentscover Ford assembly, stamping, engine,transmission, axle and components opera-tions.

The agreement also includes a mora-torium on outsourcing, a commitment toinsource over 1,500 new jobs to UAWFord facilities, and an agreement toevaluate 1,700 additional jobs forinsourcing.

The proposed contract also deliverseconomic gains for our active and re-tired members, protects health care foractive and retired members, and renewsour commitment to safety in the work-place.

Ford has agreed to contribute $15.4 bil-lion to secure retiree health care for cur-rent and future UAW retirees for years tocome, including $13.2 billion to establisha Voluntary Employee Beneficiary Asso-ciation (VEBA). We also agreed to a newwage for entry-level workers, including apromotion process — by seniority —which will allow these workers to reachfull traditional wages.

We believe this contract lays the po-tential for renewed success for UAW mem-bers and Ford Motor Co. The members ofthe UAW Ford National Negotiating Com-mittee are proud to recommend it to youfor ratification.

UAW Ford Bargainers PreserveJobs, Protect Wages and Benefits

New Contract Protects Wages,Provides Four Lump Sums

The proposed agreement protects thewages of UAW hourly workers at Ford,and provides four lump sum payments,one in each year of the agreement.

Projected Total GainsTotal economic gains from the pro-

posed agreement add up to $12,904 for atypical Ford assembler, based on a stan-dard 2,080-hour year and 10 percent over-time. That figure includes the $3,000settlement bonus, performance bonusesof 3 percent, 4 percent, and 3 percent,and projected cost-of-living adjust-ments, after diversions.

Settlement andPerformance Bonuses

UAW-represented Ford workers, in-cluding long-term temporary workers,who are on the active roll on the effec-tive date of the agreement, will receivean up-front settlement bonus of $3,000.Workers on pre-retirement leave, in pro-tected status, on temporary layoff, onFamily and Medical Leave, or those onleave of absence beginning not earlierthan 90 days prior to the effective dateof this agreement, are also eligible. Thesettlement bonus will be paid in the sec-ond pay period following official notifi-cation of the agreement’s ratification.

Three additional bonuses will be paidin the second, third and fourth years ofthe agreement. In October 2008, UAWFord workers with seniority as of Sept.15, 2008, will receive a lump-sum perfor-mance bonus equal to 3 percent of quali-fied earnings (including base wages,COLA, overtime, shift and seven-dayoperator premiums, call-in pay, vacation,holiday and other paid time off) over thepreceding 52 pay periods. In October2009, workers with seniority as of Sept.21, 2009, will receive a lump-sum bonusequal to 4 percent of qualified earnings.A final performance bonus, equal to 3percent of qualified earnings, will be paidin October 2010, to workers with senior-ity as of Sept. 20, 2010.

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2

Cost-of-Living AllowanceThe proposed agreement maintains the

existing COLA formula, based on theCPI-W for all items less medical care. Asof the effective date of the agreement, $2.03of the current $2.13 COLA float will befolded into base wage rates. The remain-ing 10 cents will be the initial COLA float.

The 2 cents quarterly diversion agreedto in the 2005 UAW-Ford health caresettlement agreement will continue, andbe made permanent. An additional 4 cents

Profit Sharing MaintainedThe UAW Ford profit-sharing for-

mula will continue unchanged, and con-tinue to make graduated paymentsbased on Ford' s U.S. profits.

In addition, our bargaining team ne-gotiated an expanded definition of theprofits to be included in the formula. The

definition was clarified to ensure that itwill include any potential income result-ing from the establishment of an indepen-dent VEBA trust for retiree health care.

Ford Motor Credit Co., however, willno longer be included in the profit-shar-ing calculation.

per quarter will be diverted to fund thenew VEBA that will secure lifetime healthbenefits for current and future retirees.A final 4 cents per quarter will be di-verted to defray the cost of health carebenefits for active workers. These di-versions will be taken in the order listed.If a quarterly COLA adjustment is lessthan 10 cents, the company will not havethe right to make up the difference infuture quarters.

Additional diversions totaling 5cents will be taken until the cumulative17 cents in diversions agreed to underthe 2005 health care settlement isreached. Should the timing of these di-versions, which began earlier at GMthan at Ford, lead to a disparity in COLAwith GM, additional diversions of nomore than 2 cents will be taken until par-ity is achieved.

Moratorium onOutsourcing

Except for certain actions alreadyidentified, the company has agreed to atotal moratorium on new outsourcing ofUAW Ford work from UAW Ford facili-ties through the term of this agreement.The moratorium will protect currentUAW jobs and allow UAW Ford work-ers to focus on winning new work forour facilities.

Plant Closing andSale Moratorium

Ford has agreed that it will not close,idle, nor partially or wholly sell, spin off,split off, consolidate or otherwise disposeof, in any form, any plant, asset or busi-ness unit of any type beyond those whichhave already been identified. Three facili-ties have been identified by Ford as ex-empt from the plant closing moratorium:Twin Cities Assembly, Cleveland Castingand Batavia Transmission.

UAW WinsProduct and Investment Guarantees

in U.S. Manufacturing Plants

Union Has Voice in FordDecision-Making

After years of watching the companylose market share and seeing our commu-nities lose good-paying manufacturingjobs, UAW negotiators made it a top pri-ority to ensure that UAW members haveinput into company decision-making.

For the first time ever, the union wonagreement that the vice president and di-rector of the UAW National Ford Depart-ment will serve as a member of thecompany’s Manufacturing OperatingCommittee, where critical decisions are madeabout current operations and future prod-uct. This will ensure that UAW Ford work-ers have a seat at the table during discus-sions about the future of Ford Motor Co.

A key goal for UAW bargainers dur-ing these negotiations was to retain andexpand the employment available toUAW members at Ford’s U.S. facilities.We succeeded in winning unprec-edented guarantees to allocate specificproducts to UAW Ford assembly, stamp-ing, engine, transmission axle and com-ponent plants.

Major New InvestmentsThe UAW won commitments from

Ford to build five new flexible bodyshops in UAW Ford assembly plants, a

commitment to invest $200 million in newtechnology and equipment in UAW Fordstamping plants, a $20 million tool and dieinvestment in Dearborn, Mich., and sub-stantial new investments in UAW Fordpowertrain operations.

As a result of this agreement, severalFord manufacturing facilities that werepreviously identified for closure by thecompany will remain open. UAW nego-tiators were able to win one-year exten-sions for two plants slated for closure –Twin Cities Assembly and ClevelandCasting.

These groundbreaking product and

investment commitments, along with amoratorium on outsourcing and anagreement to insource new work, willprotect the jobs of tens of thousands ofUAW workers and will help to sustainFord as a high value-added manufac-turer with a strong base of employmentand production in the United States.

In addition, these commitments willhave a positive effect on the employ-ment of thousands of workers at relatedsupplier plants and will help maintainthe contribution of Ford facilities to thelocal and regional economies in whichthey are located.

3

Ford Commits toInsourcing

In response to our bargaining team’sdemand that Ford take action to main-tain and expand its U.S. manufacturingbase, the company has agreed toinsource work totaling more than 1,500jobs during the life of the agreement. Thework will be retained for the term of the2007 National Agreement, or for thelifecyle of the product, whichever islonger.

In addition, more than 1,700 jobs willbe evaluated for insourcing.

Union Wins Involvementin Supplier Initiatives

For the first time, union memberswill have direct involvement in ef-forts to maintain and improve sup-plier operations.

As customers of supplier plants,UAW Ford workers see first handthe critical impact that suppliers canhave on production, quality and con-sumer acceptance of Ford vehicles.Strong partnerships between Fordand its suppliers can enhance ourjob security, because a well-func-tioning supply chain is essential toachieving world-class vehicle quality.

To enhance and coordinate ini-tiatives to help suppliers improveproductivity, quality, health andsafety and also address workplaceculture issues, two new positions,funded by the UAW Ford NationalPrograms Center, will be devoted toSupplier Support Initiatives. UAWFord workers now will have a greateropportunity to assist supplier com-panies in reducing waste, control-ling costs and improving quality,often improving the job and incomesecurity of our UAW supplier mem-bers.

Product and Investment Commitments

4

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New Wage and Benefit Structure for Entry-Level Employees

The entry-level wage structure in thisagreement helps our union preserve jobswhile the company restructures and cre-ates the environment for adding newjobs. Upon ratification, this provision ofthe agreement will produce immediateresults for our members. Ford’s agree-ment to insource 1,500 new UAW jobs,and evaluate another 1,700 forinsourcing, is directly related to the newwage structure for entry-level employ-ees hired on or after the effective date ofthe proposed agreement.

UAW Ford workers currently as-signed to ACH facilities and those onprotected status will be placed beforethe company can hire any workers intoentry-level positions.

Workers hired under the new wagestructure will be UAW Ford employees,with all the rights and protections of ourunion contract, and will have the oppor-tunity to transfer to traditional, higher-paying positions as jobs become avail-able regardless of where the opening

occurs, without relocating, except in two

facilities.

It is important to note that no cur-

rent member who has seniority on the

effective date of this agreement will ever

be assigned entry-level wages. Only

those employees hired after the effec-

tive date will be subject to the new rates.In order to maintain Ford as a pro-

vider of standard-setting manufacturingjobs now and in the future, the numberof entry-level jobs will be 20 percent ofthe UAW Ford workforce corpor-atewide. Once this 20 percent is reached,workers hired at entry-level wages willbe transitioned by seniority to positionsat traditional pay rates before any newentry-level workers are hired.

Entry-Level BenefitsEntry-level workers will be covered

by a modified benefit plan, including thefollowing elements:

• A cash balance defined benefit re-

tirement plan. Ford will deposit 6.4percent of workers’ wages into aportable retirement plan, which willaccrue interest tied to U.S. Treasurybonds. This plan provides forthree-year vesting.

• Retirement health care fund. Tohelp fund health care in retirement,Ford will contribute $1 an hour foreach hour worked into each entry-level worker's TESPHE.

• Health care plan. Entry-level work-ers will be covered by the NationalPPO and will have annual in-net-work deductibles of $300 single/$600 family. Co-insurance will be10 percent in-network, with an an-nual cap on out-of-pocket expendi-tures of $1,000 single/$2,000 family.To defray these costs, Ford will pro-vide workers with $300 single/$600family annually in a health carespending account. Entry-levelworkers will be eligible for dentalcoverage and a vision exam afterthree years, and for full vision cov-erage after five years.

• Supplemental Unemployment Ben-

efits (SUB). Entry-level workers withat least one but less than three yearsof seniority will be eligible for 26weeks of SUB. That increases to 52weeks (which can be extended) forworkers with three or more years ofseniority.

8

Seniority Workers Maintain and RegainRight to Preferred Jobs

The UAW’s goals during this round of bargaining included winning new product and investment in UAW Ford facilities,a moratorium on outsourcing, greater job security for our members, and protecting seniority rights for UAW Ford

workers, including the right to use seniority for preferred jobs.

Under the terms of the proposed agreement, every current seniority worker at Ford is protected and will keep his or hercurrent rate of pay and benefit package.

Entry-level workers who convert to tra-ditional status will retain their cash bal-ance pension plan and defined-contribu-tion post-retirement health care fund, asdescribed below, but will otherwise re-ceive the same pay and health care ben-efits as traditional UAW-Ford employees.

Entry-Level WagesThe entry-level wage structure will

have a starting rate of $14.20 per hour anda full rate of $15.34 per hour. Entry-levelworkers will advance from the starting rateto the full rate for their classification infour progression increases, one every 26weeks.

In addition, entry-level workers will re-ceive annual raises through a new wageformula that will provide increases tied toeither (a) the percentage increase in aver-age hourly earnings, excluding overtime,of workers in the U.S. manufacturing sec-tor or (b) the annual rate of inflation,whichever is greater, up to 3.75 percent.(If the wage formula generates an increaseabove 3.75 percent, the additional amountwill be subject to a mutually-agreed dis-position.) Increases will take effect in thefirst pay period of each calendar year.

In addition to annual wage formula in-creases, entry level workers with senior-ity as of the designated eligibility date willreceive performance bonuses in each yearof the four-year agreement. An entry-levelworker’s performance bonus will be equalto 3 percent of qualified earnings duringthe previous 52 pay periods. Performancebonuses will be paid in May 2008, 2009,2010 and 2011, based on April eligibilitydates.

Entry-level workers are eligible for theChristmas bonus, as described on page 26.

New Sourcing Language Designedto Bring Work Into Plants

Investment in UAW Ford people andUAW Ford products was a top priorityfor our UAW negotiating team duringthis round of bargaining.

The company has agreed to a mora-torium on outsourcing, which will pro-tect the jobs of thousands of UAW Fordmembers. In addition, modifications inthis contract – including an entry-levelwage for a limited number of UAW Fordworkers and the restructuring of retireehealth care costs – will make our facili-ties more competitive and support ourplan to win work for our plants.

Building on achievements in previ-ous contracts, UAW negotiators wonenhanced commitments to UAW partici-pation in product sourcing decisions.With input at every level of the sourcingprocess, UAW Ford members will be po-sitioned to take maximum advantage ofour new, more competitive cost struc-ture in order to win new work at our fa-cilities.

UAW Representation onFuture Product Sourcing

Our bargaining team won languagethat will add UAW Future Product Sourc-ing Representatives to the UAW Na-tional Ford Department. These unionrepresentatives will ensure we have earlyand direct involvement in all insourcingand outsourcing decisions in thecompany’s product development sys-tem. They will have access to informa-tion concerning business planning, mar-keting, purchasing, design, engineeringand manufacturing.

Commitment on New-Technology Vehicles

Our bargaining team at Ford won acommitment from the company to investin new technologies, such as hybrid ve-hicles and alternative fuels and their com-ponents, in UAW-represented Ford fa-cilities when a competitive business caseexists.

Sourcing LanguageStrengthened

In order to improve our ability to winwork for our facilities, our bargaining

All Costs on the Tablefor Cost Reduction;Job Protection and

Insourcing EffortsFord Motor Co., like most com-

panies, had a history of eliminatingjobs first as a way to be competitive.National negotiators went into thisset of bargaining insisting all costsin all areas of the business – ratherthan just labor costs – should be in-cluded in competitive studies. As aresult, we have language to aid jobprotection and insourcing efforts.

Local union leadership will be in-volved in the plant’s cost reductionefforts from the beginning, using a“four walls” approach that consid-ers all costs in addition to laborhours per unit.

It is expected that increasing effi-ciencies through the Total Cost pro-cess will not only save jobs, butmake plants more competitive so thatLocal Job Security Operational Ef-fectiveness Committees will be ableto better make business cases toadd business and jobs at the locallevel.

team won several enhancements in thesourcing language contained in Appen-dix P to the UAW-Ford labor agreement.

• The union will now have the abilityto present all business cases relatedto insourcing opportunities directlyto applicable company decision-making parties.

• The UAW National Ford Depart-ment and UAW Ford local unionswill now receive all requests forquotation packages before an out-side supplier during a market teststudy. This will allow more time forour local committees to prepare asolid business case for protectingwork at our facilities.

• To ensure our facilities have theability to insource more products,language was added to addresswork that is temporarily brought into one of our locations. If the workstays at Ford for more than 12months, it will be considered UAWFord work and subject to contrac-tual provisions on outsourcing.This will enhance the ability of lo-cal unions to permanently retain thiswork and allow our plants to becomemore competitive based on capac-ity.

• The company will now provide datato the union regarding the sourcingof major vehicle components in elec-tronic format, to be updated on aregular basis. This will provideUAW representatives with timelyand accurate information regardingthe sourcing and costs of work thatcan be considered for insourcing.

Financial DataProcess Improved

Your bargaining team won a major vic-tory by improving the local union’s abilityto develop competitive business plans andwin work for our facilities. When the com-pany compares the cost of doing businessat a UAW Ford facility versus an outsidesupplier, it no longer may consider costsnot directly associated with the compo-nents being analyzed. The company mustalso reflect any Job Security Program (JSP)

costs associated with a sourcing actionas a negative cash flow against vendorpricing.

The company can no longer set anunrealistic Time-Adjusted Rate of Return(TARR) hurdle rate to stop us frominsourcing work at UAW Ford facilities.The company will now use the sameTARR hurdle rate established for globalsourcing decisions.

Online Training EnhancedNegotiators won a commitment for

online training for UAW local union of-ficers and job security representativeswho are involved in sourcing decisions.The goal of the training is to gain accessto interactive, real-time financial toolsthat will allow UAW representatives tomake the most effective case for retain-ing and insourcing work in UAW facili-ties.

9

Job Security Program Improved

Attrition ReplacementIn the proposed program, attrition re-

placement covers 100 percent of the mem-bership, with only two exceptions: Attri-tion replacement will be deferred during amarket-related layoff. And when a planthas workers on protected status, attritionreplacement will be handled in accordancewith the placement guidelines in Appen-dix N, Attachment C of the National Agree-ment. The number of jobs outsourced mi-nus the number of jobs insourced, per Ap-pendix P, will be treated as attrition on aunit basis.

When a traditional worker quits, dies,retires or is placed on salary, he or she willbe replaced as soon as possible, but in nolonger than 30 days. Production employ-ees will be replaced as follows:

• Recalling a seniority worker from lay-off/in-plant protected status from thefacility, then from the preferentialplacement list or from employees oth-erwise available through the place-ment hierarchy, up to and includingvolunteers from in-zone ACH loca-tions, entry-level employees and re-hires-new hires.

Skilled-trades workers will be replacedas follows:

• Recall a skilled seniority worker fromlayoff/in-plant protected status.

• Transfer a skilled-trades employeeworking in production into the trade,or place an apprentice or retrainedjourneyperson.

• Hire a new skilled-trades worker.

Protected Status EmployeeA protected status employee will re-

main so for no more than two years if thereare job openings available. If during thetwo-year period no jobs are available,workers remain on protected status. If anemployee on protected status receives twojob offers within the two-year period anddeclines the second placement offer, heor she will be placed on inactive status,with an immediate cessation of all com-pany-provided income, but will remaineligible for a placement offer.

Protected Status EmployeePay Options

An employee being placed in pro-tected status will have a choice of two

UAW negotiators made substantial improvements to the landmark job and income security program. The GuaranteedEmployment Number (GEN) benchmarks have been eliminated, and all seniority workers are covered as of the effective dateof the proposed agreement. Changes make it possible for entry-level employees to become traditional employees to fillvacancies. Allowable reasons for layoff remain the same, as does the 48-week maximum layoff period.

options: report to the work facility for amandatory nontraditional work assign-ment and receive 100 percent of his or herregular straight-time hourly rate of pay fora 40-hour week, or do not report for work,but receive 85 percent of his or her regularstraight-time rate of pay, exclusive of anypremiums, for a 40-hour week.

Under either option, the employee inprotected status will continue to earn pen-sion credits on the basis of 40 hours perweek and will continue to receive all ac-tive employee benefits and provisions. Incertain circumstances, the national partiesmay agree that placement on protected sta-tus at the 85 percent rate is mandatory.

Attrition ReplacementObligations to be Fulfilled

All opening hiring obligations result-ing from the 1999 and 2003 Collective Bar-gaining Agreements will be fulfilledthrough the hiring of full-time and tempo-rary part-time employees and the conver-sion of Visteon hourly employees at formerFord locations to Ford full-time hourlyemployment status, the return of the Ster-ling and Rawsonville plants to Ford, andtwo separate flowback actions that pro-vided eligible Ford employees at Visteon/ACH locations opportunities to return toFord locations during the 2003 Agreement.

During the 2007 Agreement, the place-ment of interested Ford hourly employeesat closed/idled locations into availableopenings at Ford locations, the preferen-tial hiring of temporary employees into full-time jobs, the hiring of new entry-levelhourly employees and the introduction ofnew work into Ford facilities will aid in thecreation of new job and hiring opportuni-ties in support of the replacement obliga-tion fulfillment.

Relocation AllowancesIncreased

When employees are relocated be-tween plants at least 50 miles apart, theywill be given a choice between Basic Re-location Allowance and Enhanced Mov-ing Allowance.

Basic Relocation Allowance providesthe employee $4,800 and enables the em-ployee to seek a Return to Basic Unit afterworking at the new plant for six months orupon indefinite layoff from the new plant.

JSP and SUB IncreasedFord will provide full funding for

the Job Security Program at its previ-ous level of $944 million, and theSupplemental Unemployment Benefit(SUB) Fund at its previous level of$918 million.

The maximum benefit for workersreceiving SUB will be increased from$190 to $200 weekly for a worker onqualifying layoff who is not receivinga state system benefit per Article 7,Sec. 3 (d), or who refuses a companyoffer pursuant to the local seniorityagreement.

Because the Guaranteed IncomeStream (GIS) program is dormant, theparties agreed it will be eliminated.However, in the event JSP and SUBfunds are exhausted before the expi-ration of the 2011 agreement, the GISprogram will be reinstated.

Enhanced Relocation Allowance pro-vides the employee a maximum of$30,000, $6,000 of which is provided asa signing bonus to cover miscellaneousup-front cash expenditures. An addi-tional $16,000 will be paid to the em-ployee at the new location. After oneyear at the new location, the employeemay receive $8,000 if they continue tobe an employee there. Employees receiv-ing the Enhanced Relocation Allowancewill terminate their seniority at all otherFord locations and will not be eligiblefor recall/rehire or Return to Basic Unit.

Return to Basic UnitEligible employees will automatically

be considered to return to the plantwhich is their basic unit or, in the caseof employees from closed locations, toreturn to other plants in the same zoneof their basic unit. Eligible employeesinclude those who previously were in-eligible because of a failure to make atimely application or because of a re-fusal of a previous Return to Basic Unitopportunity.

Buyout PackagesNationwide buyout packages will be

offered based on mutual agreement bythe parties.

10

Quality OperatingSystem Coordinators

Quality Operating System Coordina-tors (QOSCs) were established inPowertrain Operations in 2001 by theUAW Ford bargaining team. This pro-gram was expanded to Vehicle Opera-tions and Stamping in the 2003 nationalnegotiations. Our 2007 UAW team main-tained language that establishes thisvaluable quality program as a formal partof the contract as well as maintaininglanguage that allows QOSCs to investi-gate and use the best quality practicesfrom other Ford plants within their divi-sion.

Quality Language StrengthenedUAW members at Ford have made exceptional strides in quality since the last agreement, as evidenced by recent studies by

Consumer Reports, numerous J.D. Power awards and other recognition. These achievements result from the hard work andtalents of all UAW members at Ford and the contract language we have negotiated that ensures members of our union willcontinue to have a say in how we build our products.

During this round of bargaining, our UAW negotiating team won renewed commitments to maintain and extend the role ofunion members in quality issues, including a commitment to keep Quality Operating System Coordinators (QOSC) a part of theNational Agreement, as well as additional commitments on training, contact with suppliers and quality benchmarking.

Targeted Trainingto be Examined

The proposed language also calls onthe National Quality Committee to con-tract with the Manufacturing Skills Stan-dards Council, a national group thatsets standards for all manufacturing, toreview and assess the effectiveness ofthe Targeted Training Process.

Enhanced Voice forWorkers at Ford CustomerService Division

To improve service to our customersand to enhance our job security, UAWnegotiators won language which will in-crease the involvement of UAW mem-bers in decision making within the FordCustomer Service Division (FCSD).

Previous contract language on thesynchronous flow process did not servethe intended goal of improving produc-tivity across the board in FCSD facili-ties.

Benchmarking, QualityStickers to Continue

The UAW bargaining committee main-tained the ability to attend and participatein benchmarking activities to obtain feed-back on quality. Quality window stickerswill continue to be provided.

CQS Training for UAWQuality Representatives

It was agreed that upon ratification,a one-year Certified Quality Specialisttraining program will be developed inconjunction with Wayne State Univer-sity.

Six Sigma Black BeltTraining Now for HourlyWorkers

Our negotiators bargained a commit-ment that affords hourly employees theopportunity to become Six Sigma BlackBelts at their manufacturing facility. Thistraining is newly negotiated into the bar-gaining unit.

The proposed contract replaces the oldlanguage with a new process to be devel-oped jointly by local union leadership, theUAW National Ford Department and Forddivision management, focusing on en-hancing team performance. The Ford plantmanager and UAW plant chair will be re-sponsible for local implementation of thenew process, which will be regularly moni-tored by both parties.

The company and the union alsoagreed to develop a FCSD Network Re-view joint committee composed of localplant chairpersons, building managers, theUAW National Ford Department and divi-sion management. The committee willjointly investigate best practices to see ifthey can be applied to other facilities. Allparties must jointly agree prior to anychanges or modifications.

ContinuousImprovement Forums

To better facilitate input fromUAW members in building world-class quality, pursuing new oppor-tunities for growth and enhancingour job security, union and companynegotiators agreed to combine ex-isting programs into a new Appen-dix J: Continuous ImprovementForums.

Continuous Improvement Fo-rums will include participation andsupport at all levels of the UAW andFord organizations: from local unionsand UAW Ford facilities at the op-erational level, and from senior offi-cials of the corporation and theUAW National Ford Department.

Both parties recognize the inter-dependent relationship of quality,operating efficiency, employee em-powerment and job security. En-hanced and more effective Continu-ous Improvement activities will workto maximize our members’ efforts toproduce best-in-class quality and af-fordable vehicles that bring high sat-isfaction to the customer.

11

Contract Maintains,Enhances EmployeeSupport Programs

Despite the economic difficultiescaused by Ford’s loss of market share,our negotiators won a commitment fromthe company to maintain and enhancekey programs that support UAW Fordworkers and their families. These includewellness programs, assistance with fam-ily issues, dependent care, Family Coun-cils and access to rehab facilities.

Wellness Programs Protected Recognizing the need to promote

healthy lifestyles while also identifyingopportunities for cost savings in healthcare, the union and company have madechanges to maintain access for our mem-bers to the three most widely usedwellness programs: weight management,stress management and smoking cessa-tion.

UAW-represented Ford workers withappropriate health care coverage willhave access to these programs at no costthrough their health care provider. Thosewhose health plans do not cover theseactivities will pay no more than 20 per-cent of the cost, up to a maximum of $40.The company will be responsible for allcosts in excess of $40.

Rehab FacilitiesAvailable to All

Onsite rehabilitation facilities can

Funding Increased forLegal ServicesAttempt to Eliminate ProgramDefeated

Union negotiators maintained thiscritical benefit. Company negotiatorsfirst told our bargaining committee itwanted to eliminate the entire UAW-Ford Legal Services Plan, which hasbeen in effect since 1983. Companynegotiators later told our committeethat our members would have to payfor all or part of the program out oftheir own pockets.

Our bargaining committee suc-cessfully resisted these shortsightedcompany proposals and instead wonagreement that the UAW-Ford LegalServices Plan will remain in place, fullyfunded by the employer.

The union also received a commit-ment from the company to haveUAW-Ford Legal Services Plan attor-neys handle applications and litiga-tion for our workers’ Social SecurityDisability Insurance Benefit (SSDIB)claims. This is part of an overall effortto restructure and streamline theoftentimes difficult SSDIB process forworkers expected to be disabled morethan 12 months.

The UAW bargaining team alsowon the right to have UAW LegalServices offices located inside localunion halls as a convenience to ourmembers.

now be used by members with nonoccu-pational injuries.

Dependent Care AssistanceProgram Maintained

UAW bargainers turned back a com-pany proposal to eliminate this program.Our team retained this language.

Family Councils Family Councils will remain intact and

support volunteerism and community out-reach by active and retired workers.

Joint Committee to AssistWith Family Issues

While we have had to close child carecenters, our commitment to family contin-ues. Our negotiators won language to es-tablish a first-time Joint Work-Family Com-mittee (JWFC). The JWFC will collect in-formation on the needs of UAW mem-bers and their families and identify relevantFord benefits and policies.

The JWFC will propose options to as-sist with family needs due to the specialissues members face. The JWFC will makerecommendations based on its studies andcoordinate work-family programs with thetwo other Michigan-based automakers asa way of achieving cost savings.

The committee will also study Web-based options for delivering informationto our members on adoption, child care,elder care and parenting education.

The 2007 UAW Ford National Negotiating Committee consists of local union members elected by their co-workers.

12

Education, Developmentand Training ProgramFunding Protected

The company attempted to further re-duce our Education, Development andTraining Program. Our negotiators pro-tected these valuable programs andmaintained the current funding structure,which requires the company to fullyfund the programs as agreed to in the2003 National Agreement.

Retirees' TuitionAssistance Maintainedand Increased

Our national negotiators fought backan attempt by the company to eliminatethe retiree tuition assistance program,and instead won an increase in retireetuition funding from $1,500 to $1,750 percalendar year.

Tuition AssistanceActive UAW-represented workers

will be eligible for an additional $400 oftuition assistance per calendar year fordegree-related courses, raising the totalannual benefit to $5,000. The degree-re-lated book allowance was raised $100 to$200 annually.

Dependent Child TuitionAssistance Maintained

Bargainers were successful in keep-ing the UAW-Ford Scholarship Programfor Dependent Children without com-pany-sought reductions, or the elimina-tion of funding.

Education Programs forWorkers’ Retraining andSkill Enhancement

It is the goal of the UAW to enhanceour members’ occupational skills andadd greater job security for all workers.The UAW-Ford National Program Cen-ter is funded to provide programsthrough Education, Development andTraining Programs (EDTP) and the Tech-nical Skills Program (TSP).

While the level of funding does notallow for the wide range of courses thatwere available in the past, the bargain-ing committee recognized the specialduty it has to members who face plant

Learning Programs Enhanced

closures and downsizing. Therefore, wehave focused the programs to assist mem-bers to receive Personal Development As-sistance (PDA) funds so they may enrollin career-oriented retraining classes.

Negotiators also won language to setup a joint committee at the National Pro-gram Center to research and review pro-grams to enhance our members’ ability toacquire and utilize constantly changingjob-related skills and other diverse educa-tional needs.

The Joint Governing Board will be re-sponsible for terms of funding, includingschool and course approval, locations ofcourses and program guidelines.

Collective-BargainingAgreement TrainingMaintained

Collective Bargaining Agreement Train-ing (CBAT) will continue to be made avail-able to local union presidents, buildingchairpersons, bargaining and district com-mittee persons, elected alternatecommitteepersons, elected union officialsresponsible for contract administration,human resources managers, labor relationspersonnel and managers as appropriatewho have not previously attended the

The UAW National Ford Department OPEIU 494 members, from left,LaDon Hill, Karen Unruh, Denise Brooks, Barbara Hoyles and Millie Hall

training. A CBAT refresher will be de-veloped and targeted for 2008 delivery.

Labor StudiesCourses Maintained

Workers may still use a portion ofthe Education Training Assistance Pro-gram (ETAP) allocation for courses inlabor studies, provided the courses areat an accredited school of higher edu-cation and the tuition and costs are inline with the school’s generally acceptedtuition/fee structure. Reimbursementwill be paid directly to the school.

Technical SkillsProgram Expanded

The Technical Skills Program(TSP) will serve both skilled and pro-duction workers, providing programsand educational opportunities to en-sure the UAW Ford workforce canfully function in a competitive envi-ronment. In addition to the five ma-jor components of TSP, the trainingmay include Level 4 evaluationswhere appropriate.

13

A MESSAGE TO UAW FORD RETIREES

From UAW President Ron Gettelfinger, UAW Vice President Bob Kingand the UAW Ford National Negotiating Committee

Dear Brothers and Sisters,

Two years ago we made a difficult decision to support limited reductions in retiree medical benefits for UAW-

represented Ford retirees. That decision was intended to help secure your medical benefits for the long term by

assisting Ford in addressing its significant financial difficulties. In that process, we insisted on protecting our most

vulnerable retirees – those with pensions of $8,000 or less and a benefit rate of $33.33 or less – by exempting them from

monthly contribution, deductible and co-insurance provisions.

This year, in bargaining for a new UAW-Ford National Agreement, Ford again approached us seeking further

reductions in your retiree medical benefits. We have spent several months in difficult and complex bargaining with

Ford on this subject. From the beginning we refused Ford’s demands for benefit reductions.

Ford argued they have the right to reduce or eliminate retiree medical benefits, as they have done with thousands

of their salaried retirees. That issue could have been fought in the courts once the 2005 settlement expired in 2011. If

Ford prevailed in their argument, they would have the legal right to modify or even terminate your medical benefits.

Needless to say, we argued strenuously that Ford does not have the right to modify your benefits, even after the

expiration of an existing labor agreement. While we feel confident of that position, going to court always involves

risk. We wanted to avoid the uncertainty that would be created had we been forced to rely on the courts to resolve the

matter.

In addition, while we believe that Ford is both legally and morally obligated to pay retiree medical benefits, the

company’s obligation is largely unfunded. Continued benefits depend on Ford’s financial health. If Ford, which lost

$12.6 billion last year, were to file for bankruptcy, retiree medical benefits could be cut or eliminated entirely. Unlike

pension benefits, there is no required funding – and no government backstop – to protect retiree medical benefits. We

have seen thousands of retirees at other companies lose their retiree medical benefits completely when the employer

that promised to pay them sought “protection” in the bankruptcy courts.

We do not ever want to see UAW Ford retirees in that position.

Instead, we insisted that Ford agree to a funding plan that would secure retiree benefits for the long term. We are

pleased to report we have achieved that objective.

We have obtained financial commitments from Ford, totaling over $15.4 billion, to pay for retiree health care

benefits. This includes Ford’s agreement (subject to ratification and court approval) to contribute $13.2 billion to

establish a funding mechanism that will protect your retiree medical benefits – at current levels – through establish-

ment of a Voluntary Employee Beneficiary Association (VEBA).

The VEBA will operate as an independent trust and will become operational in 2010; until that time, Ford will

continue to pay for retiree health care benefits, at a projected cost of $2.2 billion.

Active workers will contribute to the VEBA through COLA deferrals and by continuing to contribute the cost of a

foregone wage increase in 2006, and the value of a wage increase otherwise payable in 2008. Along with all UAW Ford

active employees, we are united in our desire to support and protect our retired brothers and sisters.

In addition to securing health care funding through the new VEBA, we put a high priority on improving pension

incomes for current retirees. We are proud that the tentative agreement includes improved pension benefits for all

classes of retirees, together with lump sums in all four years of the agreement. These increases will protect our retirees’

standard of living and will more than offset the cost of past and future Medicare premium increases.

We know that despite our efforts to minimize the impact of the health care changes negotiated in 2005, the

additional monthly contributions, co-pays and deductibles have been difficult for many retirees and their families. We

entered these negotiations determined to safeguard the health benefits and economic security of UAW Ford retirees,

so that you can look forward with confidence, not uncertainty. We are proud that we have been able to accomplish that

goal to protect you and your family.

In grateful solidarity for your contributions to our union,

Ron Gettelfinger, Bob King and your UAW Ford National Negotiating Committee

14

Voluntary Employee Beneficiary Associationon Behalf of UAW Ford retirees

What is a VEBA? A VEBA is an in-dependent trust fund, similar in manyrespects to a pension trust. Money con-tributed to the VEBA can be used onlyto provide your health care benefits. Itcan never be used for any other pur-pose. Even if Ford were to someday filefor bankruptcy or be taken over by an-other owner, the money in the VEBAwould be secure.

Solvency: During these negotiations,the UAW bargaining team insisted thatthe independent VEBA trust must befunded with sufficient cash and otherassets to provide lifetime solvencybased on current levels of medical ben-efits, using reasonable assumptionsabout health care inflation, investmentreturns and numerous other factors.

We enlisted the help and assistanceof outside experts, including LazardFreres and Milliman, two of the best in-vestment banking and actuarial firms inthe country. We made it clear to Fordwe would never agree to a VEBA that is“short” on funding required to providebenefits at current levels on a lifetimebasis.

We are pleased to report that aftermonths of difficult bargaining, Fordagreed to fund the VEBA in a mannersufficient to provide benefits at currentlevels on a lifetime basis for current andfuture retirees, based on reasonableprojections.

Contributions from active workers:A significant part of the funding for theindependent VEBA trust is derived fromsacrifices made by active UAW Fordworkers, including continued deferral ofthe September 2006 3 percent wage in-crease, continuation of the 2 cents-per-quarter COLA diversion from the 2005Agreement, an additional 4 cents-per-quarter COLA diversion over the 2007-2011 Agreement, and conversion of thevalue of a wage increase otherwise pay-able in 2008 into an ongoing contribu-tion to the VEBA beginning in 2009.

$15.4 billion in contributions fromFord: In order to secure long-term fund-ing for retiree health care, Ford will con-tinue to pay for retiree health care di-rectly until 2010 (at a cost of roughly $2.2 billion), and also contribute $13.2 bil-lion in cash and securities to the inde-pendent VEBA trust. This figure doesnot include additional value based onpotential long-term increases in Ford’s

15

stock price. For example, if these fundingcomponents generate an additional $1.7billion as described below, the total valuein the independent VEBA trust would be$14.9 billion.

Funding for the independent VEBAtrust, to be provided by Ford, will include:

• $6.5 billion in cash contributions,beginning Jan. 1, 2008, (although theVEBA does not take over responsi-bility for providing benefits untilJanuary 2010).

• A secured note with a value of $3billion, payable over the next 10years, with interest of 9.5 percent.This note is secured, meaning it isbacked by assets at Ford Motor Co.,which serve as collateral.

• Fifteen additional annual $52 mil-lion payments to the VEBA by Ford.These annual payments are worth$450 million on a present value ba-sis.

• A financial instrument, backed byFord, called a “convertible deben-ture” or “convertible note.” Thisnote will have a face value of $3.3billion, and Ford will be required topay annual cash interest on the notefor the benefit of the VEBA. In theevent that the price of Ford commonstock increases above a certain level,VEBA trustees may convert the noteto Ford stock and then sell this stockin order to diversify assets in thetrust. This “conversion” mechanismallows the VEBA to benefit from in-creases in Ford’s stock price. Forexample, if the price of Ford stockincreases approximately 50 percentanytime over the next five years, thevalue of the note would be $5 bil-lion. If the “conversion” is not trig-gered, the note will continue in ef-fect, and the trustees can enforceFord’s obligation to pay the trust theface value of the note, along withaccrued interest.

VEBA trust pays benefits beginningJan. 1, 2010: Starting Jan. 1, 2010, respon-sibility for retiree medical benefits will shiftto the new VEBA. The VEBA will be re-quired to continue benefits withoutchange, in accordance with the earliercourt-approved settlement agreement, tothe end of 2011.

Sufficient resources to pay lifetimebenefits: The funding level we have ne-gotiated is expected to allow the VEBAto continue to provide benefits with-out change for the lifetime of currentand future retirees. VEBA funding wascalculated based on reasonable projec-tions regarding medical inflation rates,investment returns and other factors.If actual experience is consistent withthese projections, the VEBA will havesufficient assets to provide unchangedbenefits on a lifetime basis. If actualexperience is better than these projec-tions (as a result, for example, of gov-ernment action to finally address ourcountry’s health care crisis), theVEBA’s funding status will exceedour projections, providing an addi-tional layer of protection for your ben-efits. If actual experience is worse thanprojections (if, for example, investmentreturns are lower than projected ona long-term basis), the VEBA trusteesmay need to make benefit adjustmentsto maintain long-term solvency. But wehave made every effort to obtain thenecessary funding to minimize that risk.Your bargaining team believes the riskof a future VEBA shortfall is clearlypreferable to the risk of relying on Fordto continue providing retiree benefitsindefinitely.

Contributions by retirees capped at3% until 2016, 4% afterward: In or-der to achieve long-term solvency, theUAW bargaining team did have tomake one assumption about future costsavings. The 2005 settlement requiresthat monthly contributions (currently$10 single/$22 family) and co-pays anddeductibles can increase by no morethan 3 percent each year through 2011.Under the VEBA funding projections,we have assumed that this 3 percentcap on inflation increases remains inplace through 2015 but will move to 4percent starting in 2016. This changewill have a relatively small impact. Forexample, in 2018 it would mean an ex-pected monthly contribution $1 higherthan it otherwise would have been.Twenty years from now, in 2027, theimpact of the change would still be only$5 per month. Again, the actual experi-ence of the fund may be better or worsethan the projections, which may requirethe trustees to adjust these or otherprovisions over time.

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30-and-Out SupplementThe 30-and-out benefits will be increased $150 for workers who retire before their

Social Security 80 percent date during the term of the agreement. This will increasethe 30-and-out income from the current $3,020 to $3,170 per month in the fourth yearof the agreement. The 30-and-out monthly benefits for workers who retire under theproposed agreement are displayed below:

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The temporary benefit is paid to retirees who qualify for either a disability retire-ment and are not eligible for a Social Security disability income benefit, or for aspecial early retirement, and in either case have not reached their Social Security 80percent date. This benefit is paid until that date in addition to the life income benefitdescribed above, unreduced for early retirement. The proposed temporary benefitsare shown below:

Temporary Benefit

Retirements Under the New Contract

Life Income BenefitThe life income benefit rate is in-

creased in each year of the proposed four-year agreement. These increases will to-tal $2.65 per month per year of creditedservice by the final year of the agreement.The increases will be effective Oct. 1 ofeach year of the agreement.

Insurance OverpaymentsBeginning Oct. 1, 2007, retirees who

have an outstanding overpayment un-der the Life and Disability Benefits Pro-gram will have their life income benefitrate increases reduced by 50 percentuntil their debt is repaid.

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A 09.05$ 09.25$ 01.35$ 03.35$ 55.35$

B 51.15$ 51.35$ 53.35$ 55.35$ 08.35$

C 04.15$ 04.35$ 06.35$ 08.35$ 50.45$

D 56.15$ 56.35$ 58.35$ 50.45$ 03.45$

Pension Gains for Current,Future Retirees

Your UAW bargaining team resistedpersistent proposals from Ford for radi-cal changes in our pension plan and suc-ceeded in negotiating significant im-provements. The company pursued nu-merous takeaways such as: freezing allcredited service, imposing new restric-tions on early retirements, and eliminat-ing the Social Security age-creep patchwhich replaces the benefits lost due tothe gradual increase in the Social Secu-rity normal retirement age.

Your bargaining team forged an agree-ment that provides significant benefit in-creases for current and future retirees.

Credited ServiceThe UAW has periodically negotiated

pension credited service increases cov-ering periods when Ford workers lost ser-vice due to layoffs and sick leaves. Inthis bargaining session, the union nego-tiated an improvement that a worker’scredited service as of Dec. 31, 1995,would never be less than the worker’sseniority at that date.

Interim SupplementThe interim supplement is paid to

workers who retire prior to their SocialSecurity 80 percent date and who havefewer than 30 years of credited service.This benefit is paid until that date in ad-dition to the life income benefit describedabove, but is reduced for early retirement.The amount per month per year of cred-ited service, under the current agreement,payable at retirement ages 60 and 61, is$47.30. The corresponding amounts nego-tiated under the proposed agreement are$48.25, effective Oct. 1, 2007; $48.45, effec-tive Oct. 1, 2008; $48.65, effective Oct.1,2009; and $48.85, effective Oct. 1, 2010. Re-duced amounts will be paid for retirees atyounger ages.

Social SecurityAge-Creep Adjustment

The Social Security age-creep adjust-ment, first negotiated in 1999, is extendedthrough this agreement. The existingyears covered were extended to retireesborn between 1944 and Sept. 14, 1949.They will continue to receive supple-ments or temporary benefits to whichthey are entitled until they reach their so-called 80 percent date.

16

17

Life Income Benefit and30-and-Out Supplement

The UAW has once again remem-bered our retirees and surviving spouseswho retired prior to Oct.1, 2007. In thisproposed agreement, the life income ben-efit rate has been increased by $2 permonth per year of credited service. Thoseretirees receiving a 30-and-out supple-ment will receive a $120 increase in thetotal amount payable to them, inclusiveof the basic benefit rate increase. All in-creases are effective Oct. 1, 2007.

Temporary Benefit andInterim Supplement

Retirees receiving a temporary ben-efit will receive an increase of $1 permonth per year of credited service, to amaximum of $30 per month. Retirees re-ceiving an interim supplement will receivean increase of 95 cents per month peryear of credited service, reduced if retire-ment was before age 60. These will bepaid in addition to the increased life in-come benefit.

Retiree Lump-Sum BonusUAW retirees and surviving spouses

whose benefit started before Oct. 1, 2007will receive four lump-sum payments dur-ing the proposed 2007-2011 agreement.The payment for December 2007 will be$700 for all retirees and $455 for all sur-viving spouses. The lump-sum paymentsto be made in December 2008, December2009 and December 2010 will be $23.33times years of credited service, with aminimum of $233.33 and a maximum of$700. Surviving spouses will receive 65percent of the retiree amount. Examplesare as follows:

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01 33.332$ 76.151$

02 76.664$ 33.303$

03 007$ 554$

Current RetireesImproving Participation andPerformance in TESPHE

As a result of recent federal legislationand in an effort to boost members’ retire-ment savings, a new automatic enrollmentprogram will become effective July 1, 2008,or as soon as practicable thereafter. Thisprogram will apply to future hires and mem-bers who currently do not participate inthe Tax Efficient Savings Plan for HourlyEmployees (TESPHE).

Under the auto-enrollment program,3 percent of eligible weekly earnings willbe deducted from pay and contributed intoa default fund if a different investmentchoice is not selected. Members who donot want to participate in TESPHE will beable to opt out of the program within the90-day advance notice and election pe-riod.

The default funds are life-cycle funds,designed to be growth-oriented at youngerages and protective of assets at ages ap-proaching retirement. Per current TESPHErules, members in the program can changeinvestment selections and contributionpercentages at any time. Auto-enrollmentprograms have been successfully imple-mented at a number of companies and canenhance the TESPHE as a valued supple-ment to our pension plan.

Phased Retirement StudyThe Pension Protection Act of 2006 lib-

eralized provisions relating to workers’ eli-gibility for phased retirement, an optionwhereby a worker can transition to retire-ment by gradually reducing worktime andgradually increasing retirement time. TheUAW and the company agreed to studythe feasibility of offering a phased retire-ment program on a pilot basis.

TESPHE Feesto be Studied

It is well-known that small differencesin funds’ fees and expenses can have adramatic effect on investment returns overthe course of a working career. Accord-ingly, the UAW and the company agreedto jointly select an independent consult-ant to evaluate the fees and expensescharged to members, as well as the perfor-mance of all funds in Tax Efficient SavingsPlan for Hourly Employees (TESPHE).

Qualified DomesticRelations Orders

Future retirees who have QualifiedDomestic Relations Orders that requirea portion of their retirement benefit bepaid to an alternate payee will now onlyhave an equivalent portion of the spou-sal reduction charge deducted from theirpension, instead of paying 100 percentof the survivorship coverage.

Survivor CoverageImproved

The one-year marriage rule has beenchanged from the actual date of marriageto the first day of the month of the mar-riage. If future retirees should pass awayduring the 12th month, but before theexact date of the first year of marriage,the surviving spouse would still qualifyfor survivorship coverage.

Improvements for AAIWorkers

Workers who have credited service atboth AAI and Ford will receive all of theincreases for future retirees described onpage 16, “Retirements under the new con-tract,” for their years of credited serviceat Ford.

In addition, our bargaining team ne-gotiated improvements for the years ofAAI credited service earned by theseworkers. All future AAI retirees who donot elect the lump-sum option will receivethe Ford pension class code designationand the 2007 Ford pension rates.

In addition, the AAI benefit will beavailable for early commencement (underage 55) at the appropriate reduced rate.

AAI retirees who did not take the lumpsum and who retired under the 2003 agree-ment will have Ford benefit class codesadded and their benefit levels will be up-graded to the levels in the 2003 Ford pen-sion. This increase is effective Oct. 1, 2007.

ZF Batavia WorkersWin Improvement

Workers at ZF Batavia will have theirbenefits under the ZF Batavia pensionplan increased to match the rate struc-ture in the UAW-Ford Retirement Plan.The Life Income Benefit rate, theSupplemental Allowance and TemporaryBenefit rates will also increase to matchthe UAW-Ford plan.

Special SurvivorshipOption

Benefits under the Special Survivor-ship Option will be increased to $14.10per month per year of credited service,effective Oct.1, 2007.

Skilled-Trades Language Designed toRetain, Bring Work Back into Plants

Project CoordinatorClassification to ReceiveIncrease Faster

Our skilled-trades workers in theproject coordinator classification will nolonger have to wait months for their payincrease, under language that sets a newprocess for project coordinator pay re-quests in a template form to expedite rateincrease requests efficiently.

18

Apprenticeship ProgramStrengthened

Our bargaining team at Ford madesignificant improvements in our world-class apprenticeship program to ensurethat our future journeypersons remainfully trained and versatile to accomplishtheir expanded tasks in a safe and effi-cient manner.

It was also agreed that the previ-ously successful “Trouble ShootingStrategies” course originally developedfor the electrical and machine repair clas-sifications will be expanded and devel-oped for the plumber/pipe fitter and tooland die classifications.

The bargaining committee wonchanges in the apprenticeship forecast-ing methodology to force the companyto re-evaluate the forecasting data. Ne-gotiators also won language that revisesand expands the task-based apprentice-ship to account for the consolidationsand includes training concepts such asFTPM, FPS, MOS and QOS as they re-lated to the skilled trades.

Labor Costs to beDefined, Consistent

Our skilled-trades negotiators wonlanguage that defines specific method-ology to set plant labor costs so that ourmembers have greater ability to retainproject work. For decades, ever-chang-ing methods of determining plant laborcosts used by management at each loca-tion worked against our skilled-tradesmembers when bidding on projects. Insome cases, locations counted unnec-essary costs for items such as glovesand coveralls when determining our la-bor costs, putting us at a severe disad-vantage when bidding against outsidecontractors.

The new language sets consistentmethodology to determine actual plantlabor costs. Each location will have itslabor costs determined in the same man-ner, preventing the company from at-tempting to force skilled-trades bargain-ing units in different locations to com-pete against outside contractors usingdissimilar and unfairly burdened laborrates.

The bargainers also won languagethat requires the company to share in-formation about current and futureproject work with the local union on aregular basis. Engineering fees will nowbe excluded from the business case.

Skilled-Trades GovernanceA National Joint Skilled-Trades Gov-

ernance Team (NJSTGT) will be estab-lished to ensure that language agreed toin this proposed agreement and pastagreements is being implemented andadhered to.

The committee will also make surethat changes and current practices inskilled trades are being done consistently

Skilled Trades Can BidAgainst Contractors forWarranty Work

Our skilled-trades workers can now bidon warranty work currently being done byoutside contractors for vendors. A mecha-nism was created to invoice plant laborcosts back to the vendor while keepingremaining vendor warranties intact. Thislanguage finally breaks the long standingand highly contested loophole that al-lowed vendors to automatically awardwarranty work to a subcontractor outsideour competitive bidding process.

$20 Million Tool and DieInvestment in Dearborn

Due to recent improvements in com-petitiveness, our negotiators were able tosuccessfully win a commitment from thecompany to invest $20 million in purchas-ing new five-axis mills for the DearbornTool and Die plant during the term of thisagreement.

throughout the company to prevent whip-sawing. The panel will also benchmarkFord competitors to ensure our skilled-trades model achieves the highest level ofperformance and best practices.

The NJSTGT will also come up with astrategy to utilize excess skilled-tradesworkers.

A local skilled-trades governance teamwill be established at worksites to ensurethe directives of the national parties arebeing carried out.

Tool Allowance AdjustmentUAW Ford skilled-trades members

will receive a tool allowance adjustmentof 20 cents an hour effective Sept. 15,2007.

More Chances forRefurbishment Jobs

The proposed agreement includeslanguage that requires Ford DivisionalManufacturing Engineering to includeUAW skilled-trades workers when out-side contractors are being consideredto rebuild used and surplus equipment.Work that can be performed within costand timing parameters will be performedby UAW Ford skilled-trades workers.

Minor Maintenance and'Helping Hands' Defined

Under terms of the proposed agree-ment, “helping hands” is limited to break-downs only, when the primary mechanicaltrade needs assistance and additionaltrades in the same classification are un-available. Minor maintenance is definedto maintain appropriate distinction be-tween production and maintenance work.

Skilled-Trades Classification Consolidation

19

Our negotiators successfully sus-tained the integrity of the skilled-trades classification structure. Wemaintained the apprenticeable tradesby consolidating the numerous clas-sifications back into their base tradewhile also retaining date of entry se-niority. Those classifications withouta base trade as defined below will beable to maintain their current classifi-cation, with no loss of pay, until theyattrit.

Classification consolidations willnot result in an indefinite layoff orjob security action or a loss of se-niority.

There will now be 22 base classifi-cations:

• Electrician• Tool and die maker• Tool maker and

template maker• Machine repair• Millwright

In light of skilled-trades classifica-tion consolidations and technologicaladvances in tooling and machinery,our bargaining team won languagethat will empower the National JointApprenticeship Committee (NJAC) toidentify and establish a training needsmatrix specific to each skilled-tradesclassification by department and plant.

This matrix will then be used to de-velop a task-based training plan foreach skilled trades worker based onindividual need. It will include any skilldevelopment, including classroom, on-the-job, Web-based or other trainingnecessary to allow the worker to ac-complish the tasks with quality andsafety being paramount.

This training will be developed andoverseen by the NJAC.

• Sheet metal worker• Plumber/pipe fitter• Welder, general• Mechanic, auto• Industrial truck mechanic• Refrigeration/AC

machine operator• Refrigeration maintenance

and installation• Powerhouse mechanic• Stationary steam engineer• Metal model maker• Pyrometer (Cleveland)• Inspector, tooling layout• Experimental parts and

body maker• Maintenance, general

plant skilled• Machining specialist• Machinist• Carpenter, all-around

No Umbrella CombinationsOur negotiating committee resisted at-

tempts to combine trades under the um-

Enhanced Training

brella concept. There are no mechani-cal or electrical umbrellas for any class-ifications or combinations thereof.

Bereavement Pay ExpandedWorkers are now eligible for bereave-

ment pay in the event of the death of a

Jury Duty LanguageImproved

Your bargaining team improved thejury duty provisions. Afternoon-shiftworkers will now be excused on eitherthe shift before jury service or the shiftafter, at the option of the worker. Work-ers who are called in and who report forjury duty during a workday that is withinthe worker’s scheduled vacation shut-down may request equivalent EAAhours for each day served, provided sat-isfactory evidence of the jury service isprovided. At locations where there is anAlternative Work Schedule, the EAA

Pay for Medical TreatmentBeyond Normal WorkHours Improved

Workers who are injured on the joband must go to the hospital will be paidfor the time they spend in treatment be-yond their normal working hours at timeand a half. Workers must provide suit-able evidence of time spent in treatment,and the maximum compensation remainsat four hours.

National Attendance Program Established;Allows Flexible Use of EAA Days

Your bargaining committee was mind-ful of the differences and inconsisten-cies in attendance policies at variousFord locations. Negotiators bargained anational attendance program that en-sures consistency and fairness through-out all locations and also provides flex-ibility so workers can deal with un-planned events. The program will be-come effective Jan. 7, 2008.

Workers will now be able to use theirExcused Absence Allowance (EAA)days after the fact, provided the follow-ing conditions are met:

• The worker has EAA time available.• The EAA time is taken in increments

of eight hours, unless under anAlternative Work Schedule,where the day will be taken inthe equivalent of one regularshift.

• The worker has no attendance-related discipline on record at thetime of the absence.

• There are no adverse effects toproduction due to the collectivelevel of unplanned absences.

EAA time does not count towardabsentee discipline. Workers will stillbe able to schedule EAA time in ad-vance. Workers are still expected tocall in all unplanned absences at least15 minutes prior to the start of a shift.

time may be requested in increments ofone regular shift for each regular workdayserved.

birth parent and an adoptive parent, animprovement over the current provi-sions. Bereavement pay is currentlyeither a birth parent or the adoptive par-ent.

HMO, PPO CoverageMaintained

The company pushed to restrict yourchoice of health plans. Your negotiatingteam successfully resisted these effortsand the existing HMO and PPO plansremain available in addition to the Na-tional PPO plan. Dental HMOs were alsomaintained.

Effective March 1, 2008, the officevisit co-pay in all HMO plans increasesto $25 for HMO subscribers who are ac-tive employees. Also effective March 1,2008, a $100 emergency room co-pay wasadded for HMO subscribers who are ac-tive employees. This co-pay is waived ifthe patient is admitted to the hospital.

Effective Jan. 1, 2008, those enrolledin the Blue Preferred Plus PPO and theBlue Select PPO will have a $150 in-net-work deductible for single coverage anda $300 in-network deductible for multiple-party coverage. The following serviceswill not be subject to the plandeductibles: prescription drug co-pay,office visit co-pay, durable medicalequipment, prosthetic and orthotic ap-pliances, mental health and substanceabuse and certain preventive screenings.

Effective Jan. 1, 2008, there will also bea $100 emergency room charge for activeemployees in these two PPOs, which iswaived if the patient is admitted to thehospital.

HMO and PPO plans remain subject toannual review for cost effectiveness un-der the Alternative Plan Value Letter.

In addition, effective March 1, 2008,the National PPO (NPPO) will provide fiveoffice visits per active worker per year at aco-pay of $25 per visit, if their HMO orPPO plan has to be dropped and no otherHMO or PPO plan is available in their area.

PrescriptionDrug Co-pays

Effective Jan. 1, 2008, mail-order pre-scription drug co-pays for active workersenrolled in the National PPO (NPPO) in-crease by $3 for a 90-day supply to $10 forgeneric, $15 for brand, and $19 for erectiledysfunction (ED) drugs.

As of Jan. 1, 2008, certain over-the-counter antihistamines and vitamins willno longer be covered under the prescrip-tion drug program. In addition, the mail-

order maintenance drug list was up-dated, adding more than 30 drugs andremoving four drugs for patient safetyreasons.

Physician ExtenderServices Now Covered

Health care access will be improved,as physician extenders (non-physicianpractitioners) are now covered in theNPPO plan. These include practitionerssuch as advanced practice nurses andphysician’s assistants.

Preventive Tests ImprovedEffective Jan. 1, 2008, a number of

additional preventive and screeningtests were added to the NPPO cover-age.

A woman whose mammogram is in-conclusive is now eligible to have anMRI for additional cancer screening asrecommended by the American CancerSociety.

Annual eye exams will also be cov-ered under the vision benefit to help de-tect high blood pressure, heart diseaseand high cholesterol at an earlier stage.

A screening colonoscopy is nowcovered once every 10 years beginningat age 50. People with a high risk ofcolorectal cancer based on family his-tory or genetic factors can have this testevery two years starting at age 25 andevery year as of age 40.

Hospice CareCan be Extended

The cap on covered hospice servicescan now be exceeded by the enrollee ifauthorization is obtained from the healthinsurance carrier’s case managementprogram.

Health Care Protected, Benefits Improved

UAW President Ron Gettelfinger, left, listens as union negotiators make apoint during a bargaining briefing session.

20

Health care was an extremely difficult issue in this round of bargaining, but our national negotiating team at Fordsuccessfully resisted the company’s efforts to shift many substantial costs to our members. Negotiators saved ourHMOs and PPOs and made key improvements in several areas.

Dental ImprovementsThe annual dental maximum and life-

time orthodontic maximums for dental

coverage were increased.

Effective Jan. 1, 2008, the annual maxi-

mum will increase to $1,850 (from $1,700),

and the orthodontic maximum will in-

crease to $2,200 (from $1,800).

There were other dental changes, in-

cluding:

• Full-mouth bitewing X-rays will be

covered once per year for children

14 and younger and once every two

years for 15 and older.

• Participants are eligible for two

brush biopsies per year to screen for

oral cancer.

• Fluoride trays for those undergoing

chemotherapy will be covered.• Those with a documented history of

periodontal disease can now havefour cleanings per year, up from three.

DME and P&O UpdatedDurable medical equipment (DME)

and prosthetic and orthotic (P&O) cov-erages have been updated to Medicarelevels.

Hearing Aid CoverageEffective Jan. 1, 2008, hearing aid cov-

erage will be improved so that active mem-bers receive a $2,000 allowance for hear-ing aids, ear molds and associated de-vices every three years.

In addition, Ford and UAW continueto evaluate a network provider systemfor hearing aids, which would improveaccess and quality, as well as result incost savings for actives and retirees.Upon implementation, retirees will gettwo digital hearing aids under the net-work.

Eligibility ChangesThere were changes to eligibility for

certain dependent children. Principallysupported children who are enrolled inthe program as of ratification will be“grandfathered” – and there will be no

21

Negotiators Jeff Terry (second from right) and Jodey Dunn (right) reviewcontract language with UAW Vice President Bob King and Chuck Browning,assistant director of the union’s National Ford Department.

new principally supported coverage avail-able afterward. Legal guardianship hasbeen limited to minor children who are re-lated by blood to a primary enrollee orspouse. In addition, effective Jan. 1, 2009,children 19 and older will be covered onlyif they are full-time students. Such full-time student coverage will be availablethrough age 24.

Community Health CareInitiatives Maintained

The existing Community Health CareInitiative sites were maintained.

Immunizations UpdatedImmunization coverage was ex-

panded to include new doses and newvaccines per national recommendations.

Ambulance CoverageImproved

Effective Jan. 1, 2008, services willnow be covered if the ambulance treatsthe participant at the scene but does notactually transport them to a medical fa-cility.

The UAW and Ford have agreed to an unprecedented commitment to im-prove the affordability, accessibility and accountability of the U.S. health caresystem, including the pursuit of a lasting solution to our national health carecost crisis.

The parties have agreed to create the National Institute for Health CareReform that will serve as a premier research and educational health care reformcenter dedicated to understanding, evaluating and developing thoughtful andinnovative reform to improve the medical delivery system in the United Statesand expand access to high-quality, affordable and accountable health carecoverage for all Americans.

Ford has committed to five annual $1 million contributions to fund theInstitute.

National Institute for Health Care Reform

Our bargaining team at Ford success-

fully improved our Group Life and Dis-

ability insurances, and won new protec-

tions for injured workers. The proposed

agreement includes disability language

that makes the filing process easier, elimi-

nates unnecessary delays, reduces pa-

perwork and red tape, provides profes-

sionals to assist our members, and en-

sures equal treatment for all workers with

non-job-related injuries or illnesses.

Negotiators also protected our pock-

etbooks by holding the line on proposed

rate increases for retirees’ optional insur-

ance, while reducing the cost for active

workers.

Survivor BenefitsTransition benefits have been in-

creased $50, from $650 to $700 per month.The Bridge benefit has been increased$50 per month, from $650 to $700. In ad-dition, the Transition benefit offset forreceipt of Social Security will increaseby $25, from $350 to $375.

Accident and Sickness(A & S) and ExtendedDisability Benefits (EDB)

As a result of the negotiated in-creases in the base hourly rate, all work-ers will receive increases in the Acci-dent and Sickness Benefits and ExtendedDisability Benefits. Benefits under theLife and Accidental Death and Dismem-berment coverages also increase (seechart).

In addition, there will be a joint effortto reduce inappropriate use of disabilitybenefits by focusing on certain physi-cians. These physicians may be removedfrom the program and any certificationscoming from them will no longer be re-garded as proof of disability.

In an effort to minimize the impact ofoverpayments from Social Security Dis-ability Insurance Benefits (SSDIB), theparties have agreed to allow the use ofso-called ”sweep accounts,” as part ofthe new Social Security disability appli-cation process through the UAW-FordLegal Services Plan (see below). Underthe current program, members agree to

repay any benefit they were paid by theA&S or EDB Program when they receivetheir retroactive SSDIB award. The sweepaccount, which is voluntary, allows SSDIBto transfer funds directly into the sweepaccount which are then directed to Ford.This will help prevent over payment re-covery situations for our members.

Life InsuranceLife insurance coverage will increase

with base hourly wage increases (seechart). In addition, members will becomeeligible for life insurance on the day ofhire. Previously, they became eligible thefirst day of the month after hire.

Exam MileageReimbursement

The exam mileage reimbursement wasincreased to the IRS maximum limit of 48.5cents and will keep pace with increasesby the IRS.

Psychologist Can Now PutMember on Medical Leave

Negotiators won language that allowsa psychologist to put a member on medi-

Group Life, Disability Improved; Benefits Protectedfor Injured Workers and Disabled Retirees

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cal leave for the first 30 days of medicalleave. This clears up the current situa-tion where the company accepts thepsychologist’s note for medical leave,but Unicare does not recognizie thepsychologist and denies the A & S ben-efit. After the 30-day period, treatmentby a psychiatrist will be required.

Benefits Protected forDisabled Retirees;Multiple Unicare FilingsNo Longer Needed

Disabled retirees will no longer be re-

quired to provide yearly medical updates.

For those disability retirees who receive

the Unicare supplement to make up the

difference between the Accident & Sick-

ness benefit and the Pension benefit,

Unicare will no longer actively manage

their cases after one year. Negotiators

were aware of cases where Unicare

stopped payments to retirees who had

difficulties getting annual documentation

from doctors who have moved or passed

away or from doctors who have not pre-

viously treated their conditions.

22

Equal Treatment forNon-job-Related Injuryand Illness

In a major breakthrough for workerswith non-job-related injuries and ill-nesses, UAW Ford negotiators won acommitment from the company for equaltreatment for all workers with such con-ditions. All Class II and Class III statusemployees will be returned to a Class Imedical status and Class II and IIImedicals will be eliminated. This will en-sure that no member will be treated dif-ferently because his or her work loca-tion is unable to accommodate a workrestriction or due to other placement is-sues. As a result, no member will be putin a situation where he or she will even-tually run out of health care benefits, beunable to retire or lose Ford employeestatus.

As currently, workers on Class I medi-cal status will retain health care benefitsand are paid Accident and Sickness andExtended Disability Benefits.

UAW Legal Services toAdvocate for Members onSocial Security Disability

Our negotiators recognized the needfor our members to have competent le-gal advice when they file for Social Se-curity disability benefits. UAW Legal Ser-vices will now handle the filing of theSocial Security disability application forany member who is required to file whilereceiving disability benefits fromUnicare, at no cost to the member. LegalServices will also ensure that no one willhave to go through the Social Securitydisability application process if it is notlikely they will be approved (see below).

Medical Leave andDisability ClaimProcess Simplified

A new, simplified and combined pro-cess for medical leave and disabilityclaims will result in more timely A&S pay-ments and should help with the “20-dayrule” that resulted in members havingproblems getting their benefits. The newprocess will establish a toll-free numberfor members to call in for their conditionalmedical leave, and to initiate their dis-ability application. The necessary formswill be mailed to a worker who needs tofile a claim, while his or her work locationand Unicare will be notified.

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There will be an open enrollment pe-riod in each year of the proposed con-tract: 2008, 2009, 2010 and 2011. This is animprovement over current contract lan-guage, which had an open enrollment pe-riod for only the first year of the agree-ment.

You will be able to enroll in Level 1 orLevel 2 without providing Evidence of In-surability (EOI). If you choose to go upto a higher level, you may do so by sup-plying the necessary EOI.

Six new Employee levels will be added,and three new Dependent levels will beoffered.

Hourly Optional Employee and Dependent LifeInsurance Plan Improvements

Negotiators also added an Accel-erated Death Benefit option to theOptional Life benefit– up to 80 per-cent of the life insurance benefit willbe available to the terminally ill em-ployee/retiree with a life expectancyof less than 12 months.

The company wanted an increaseof 20 percent for Retiree Optional Ac-cident, Life and Dependent Liferates. Our bargaining committee re-jected this to hold the rates to the2003 contract levels.

Negotiators also won a significantcost savings for our active members.Under terms of the proposed agree-ment, active UAW Ford workers willsee a 4 percent rate reduction for thecost of their Optional Life and OptionalDependent Insurance.

UAW President Ron Gettelfinger, left, gets an update on the progress ofbargaining from UAW Vice President Bob King.

23

Health and SafetyNegotiators Hold FordAccountable for Health andSafety of UAW Workers

The UAW Ford bargaining team wonseveral improvements to address healthand safety issues while holding the com-pany accountable to its stated commit-ments.

The following are some improve-ments negotiated by our team:

• Enhanced ergonomics, metalwork-ing fluids control and placard re-quirements.

• Increased training for UAW healthand safety representatives.

• Coordinated health and safety re-search.

• Consistent discipline for allegedsafety violations by management.

• Greater involvement of UAWhealth and safety representativesin numerous issues.

Placards: Accurate SafetySignage Now Mandatory

Inaccurate or nonexistent placards onnew and/or modified machinery are seri-ous safety hazards. The UAW team atFord won language that forces the com-pany to immediately correct this and en-sure that accurate placards are affixed tonewly installed machinery so workershave full knowledge about the machin-ery and the required tasks and minimumstandards before starting work. Placardswill be standardized throughout the Fordsystem so workers who transfer betweenfacilities will understand job standardsand potential health and safety hazardsat their new facility.

Placards will also be part of the pre-ventive maintenance program and sub-ject to a yearly visual inspection byskilled trades.

Temporary ErgonomicsFixes Must Be Permanent

The proposed language also calls onthe company to make a permanent ergo-nomics correction — instead of a tem-porary fix — within six months of a prob-lem being identified by the local ergo-nomics committee. Language was wonto review additional advanced ergonom-ics training for ergonomics committeemembers.

Under the proposed contract, UAWmembers at smaller Ford facilities will ben-efit from new language that increases thehours allotted to the union ergonomicscommittee for training. Worksites withfewer than 50 bargaining unit members willbe allowed to have their ergonomics com-mittee devote up to eight hours per weekon ergonomics training, investigation andanalysis. Worksites with 51 to 124 work-ers will be granted up to 16 hours per week.

Training, Duties for Healthand Safety Representatives

Our bargaining team at Ford won lan-guage that improves and/or increasestraining for UAW health and safety repre-sentatives and/or members in a number ofareas, including:

• An enhanced Guidelines, Responsi-bilities and Safe Practices (GRASP)refresher course.

• Training materials in digital/Web for-mat for enhanced, timely delivery.

• Updated Confined Space Entry Pro-gram.

• Improved “Train the Trainer” tech-niques course.

The company will reimburse UAW rep-resentatives for attendance at externalhealth and safety standards meetings suchas those by the American National Stan-dards Institute (ANSI) and the NationalFire Protection Association (NFPA) onstandards affecting the workplace. Atten-dance at these functions gives our unionsay in how national health and safety stan-dards are set.

The health and safety representativewill also conduct focused departmentalhealth and safety audits on a weekly ba-sis with company representatives. Theresults will be reported to the plant SafetyProcess Review Board.

Consistent Handling ofHealth and Safety Violations

Health and safety violations are seri-ous, no matter who is responsible. UAWnegotiators demanded and won timely in-vestigations of health and safety viola-tions that are alleged against non-bargain-ing unit personnel.

More Reporting/Monitoringof Metalworking FluidExposures

Our UAW Ford bargaining team con-tinues the union’s work to ensure thatUAW members are protected by stricterstandards than those adopted by thefederal government, which are not al-ways adequate or based on the bestavailable science. In previous agree-ments, for example, we have negotiateda limit of 1 milligram per cubic meter forexposure to metalworking fluids, farstricter than the U.S. OccupationalSafety and Health Administration stan-dard of 5 milligrams per cubic meter. Inthis round of negotiations, UAW bar-gainers won language that states if theThreshold Limit Value (TLV) reaches 50percent of the UAW-negotiated expo-sure limit of 1 milligram per cubic meter,the company is required to perform ad-ditional monitoring and corrective ac-tion, if necessary.

Each applicable facility will also berequired to provide an annual oil mistmap to determine where mist occurs.UAW health and safety representativeswill be trained and participate in mist-mapping procedures.

Coordination of ResearchIn an attempt to coordinate research

efforts and make the most efficient use of

available resources, health and safetynegotiators won language that requiresFord to participate with our UAW healthand safety counterparts at General Mo-tors and Chrysler to develop a commonresearch agenda and projects.

You're a Critical Part ofUAW Health and Safety

Keeping a tight grip on costs atFord helps us stay competitive, butnever at the expense of health andsafety. We’re proud of the excep-tional health and safety programswon by our bargaining team.

Recent incidents resulting in fa-talities and injuries reconfirm theneed not only for these programs –especially power lockout – but foreveryone to follow establishedhealth and safety guidelines.

Be your brothers’ and sisters’keeper by making sure we work safe.

24

Federal Election DayVeterans Day (Observed)ThanksgivingDay after Thanksgiving

Martin Luther King Jr. DayGood FridayDay after EasterMemorial DayIndependence DayLabor Day

Veterans Day (Observed)ThanksgivingDay after Thanksgiving

Martin Luther King Jr. DayGood FridayDay after EasterMemorial DayIndependence DayLabor Day

Nov. 16, 2007Nov. 22, 2007Nov. 23, 2007Dec. 24, 2007Dec. 25, 2007Dec. 26, 2007Dec. 27, 2007Dec. 28, 2007Dec. 31, 2007

Jan. 1, 2008Jan. 21, 2008Mar. 21, 2008Mar. 24, 2008May 26, 2008July 4, 2008Sept. 1, 2008

}

A total of 68 holidays will be provided to UAW Ford workers over the four-year term of the proposed agreement. Thetentative agreement again retains the two national Election Days negotiated in the previous agreement.

Veterans Day will be observed on Friday the first two years of this agreement and on Monday in the third and fourthyears.

The tentative agreement also maintains the Monday after Easter, the Monday commemorating the birthday of thelate Rev. Martin Luther King Jr. and the paid Christmas through New Year’s shutdowns. In addition, members will havetwo "family days" that can be scheduled during the term of the agreement.

The schedule of paid holidays negotiated for the term of the proposed agreement is:

2007-2008

Nov. 4, 2008Nov. 14, 2008Nov. 27, 2008Nov. 28, 2008Dec. 24, 2008Dec. 25, 2008Dec. 26, 2008Dec. 29, 2008Dec. 30, 2008Dec. 31, 2008Jan. 1, 2009Jan. 2, 2009Jan. 19, 2009April 10, 2009April 13, 2009May 25, 2009July 3, 2009Sept. 7, 2009

Federal Election DayVeterans Day (Observed)ThanksgivingDay after Thanksgiving

Martin Luther King Jr. DayGood FridayDay after EasterMemorial DayIndependence Day (Observed)Labor Day

2008-2009

Nov. 2, 2010Nov. 15, 2010Nov. 25, 2010Nov. 26, 2010Dec. 24, 2010Dec. 27, 2010Dec. 28, 2010Dec. 29, 2010Dec. 30, 2010Dec. 31, 2010Jan. 17, 2011

Apr. 22, 2011Apr. 25, 2011May 30, 2011July 4, 2011Sept. 5, 2011

}ChristmasHolidayPeriod

2010-2011

Nov. 16, 2009Nov. 26, 2009Nov. 27, 2009Dec. 24, 2009Dec. 25, 2009Dec. 28, 2009Dec. 29, 2009Dec. 30, 2009Dec. 31, 2009Jan. 1, 2010Jan. 18, 2010April 2, 2010April 5, 2010May 31, 2010July 5, 2010Sept. 6, 2010

}Christmas

Holiday

Period

2009-2010

Veterans Day (Observed)ThanksgivingDay after Thanksgiving

Martin Luther King Jr. DayGood FridayDay after EasterMemorial DayIndependence Day (Observed)Labor Day

68 Holidays Over Four Years

}ChristmasHolidayPeriod

ChristmasHolidayPeriod

25

Plus two "family days" over the four-year term of the agreement.

Christmas BonusUAW Ford workers will continue

to receive a Christmas bonus of up to$600 in all four years of the agreement.Eligibility remains the same as in thecurrent agreement. The amount of thebonus will follow the schedule below:

Pay periods Amount of worked: bonus:

26 or more $600

20-25 $450

13-19 $300

26

UAW Ford ReportThis report was prepared for the

UAW National Ford Department, VicePresident and Director Bob King, bythe UAW Public Relations Depart-ment. This is a summary of the tenta-tive agreement. In all cases, the ac-tual contract language will apply. Allphotos by Jim Parks, UAW Local 245.

Production StandardsProtect Against Abuse

The bargaining team recognized cur-rent business challenges and negotiatedlanguage that creates flexibility for thecompany and protects members fromunnecessary layoffs and abusive sched-uling and relief practices.

The UAW team also won languagethat improves MODAPTS training forjob security representatives.

Alternative Work SchedulesAlternative work schedules will be

maintained at the five locations wherethey are currently in effect. Your bargain-ers agreed these schedules can be uti-lized at other locations with the approvalof the UAW National Ford Department.

Alternative work schedules that dif-fer from those established at the abovelocations may be negotiated if the modi-fied Alternative Work Schedule meetsthe needs and circumstances of that lo-cation, and is approved by the UAW Na-tional Ford Department.

A and X Plan DiscountsExtended to Those TakingSeparation Package oron Layoff

Our negotiators won language thatextends the A and X plan vehicle pur-chase discounts to workers taking aseparation package and hourly employ-ees on layoff during the first 12 monthsof their layoff, and to members of theirimmediate families.

Representation ImprovedOur bargaining team at Ford won lan-

guage designed to maintain representa-tion and give local unions flexibility as thecompany restructures. Bargaining unitsthat fall below 599 workers but with noless than 400 workers will be allowed tocombine two part-time elected committee-persons into one full-time position andmay also choose to realign representationaccording to their needs.

In addition, to ensure the safest pos-sible work environment for all UAW Fordworkers, the proposed contract adds anadditional health and safety representa-tive for plants that go to a Three CrewOperating Pattern.

The bargaining committee also won anew full-time benefits representative toserve UAW members at the Ford CustomerService Division Distribution Centerswhich do not currently have a full-timebenefits representative on site.

Discounts Maintained forParts, Extended ServicePlan for Workers, Retirees

Our bargainers won language that en-sures active workers and retirees continueto receive a discount on Ford ExtendedService Plans purchased for personal ve-hicles through a Ford or Lincoln-Mercurydealership. The parts discount for activeworkers and retirees was also maintained.

Transition forJanitorial Workers

Past and ongoing whipsawing by Fordhas reduced both the number and thewages of janitorial workers in UAW Fordfacilities. The proposed agreement allowsFord to exit specific janitorial functions byJanuary 2009. UAW Ford workers who cur-rently occupy these jobs will be offeredopportunities to transition to other workin their facility. If no alternative jobs areavailable, the worker will be “red-circled”and the job vacated through attrition.

We have won a commitment that jani-torial contractors will pay their workerswell above a living wage and respect theirright to join the UAW.

Opportunity for Parity WithSalaried Workers onIncentive Plans

Ford’s Annual Incentive Compensa-tion Plan (AICP) allows salaried work-ers to earn incentive payments if per-formance targets are met in areas suchas cost, market share and quality, evenif profit-sharing payments would not ap-ply in a particular year.

The UAW and Ford agreed that inany year company earnings are not suf-ficient to produce a profit under theUAW-negotiated profit-sharing plan,but salaried workers are eligible for AICPpayments, management will meet withthe union to discuss the possibility ofissuing a lump-sum payment to workerswho have contributed to the company’ssuccess. Such payments are not requiredbut will be at the company’s discretion.

Dues: A ConstitutionalMatter

Dues are determined by UAW Con-stitutional action and are not a subjectof negotiations. Dues are based on theprinciple that they reflect each worker’scash income, normally two hours payper month. Lump-sum cash paymentsare subject to dues because they toorepresent cash income, and are assessedat the traditional rate of 1.15 percent,which is equivalent to two hours payper month.

Duration and RatificationThese proposed changes in the

proposed agreement will not take ef-fect until the tentative agreement isratified by a majority of our respectivemembership, and only then on the ap-propriate dates specified.

The new agreement, if ratified,would run for four years and wouldexpire at midnight Sept. 14, 2011.

2007 UAW Ford National Negotiating Committee

This is the UAW’s national negotiating team whose efforts led to the achievement of a new

tentative agreement at Ford Motor Co. Ron Gettelfinger is the president of the International

Union, UAW; Bob King is vice president and director of the UAW Ford Department; Garry Mason

is the top administrative assistant to Gettelfinger; Dave Curson is director of UAW special projects;

Wendy Fields-Jacobs is the top administrative assistant to King; Chuck Browning, Joseph

Carter, Dan Brooks and Joe Gafa are assistant directors of the UAW Ford Department; Frank

Keatts is a coordinator for the UAW Ford Department; Dan Sherrick is director of the UAW Legal

Department; Chuck Gayney is director of the UAW Social Security Department; Tim McClain is

director of the UAW Health and Safety Department; Linda Ewing is director of the UAW Research

Department; Joel Goddard, UAW Local 898, Rawsonville, Mich., is co-chairperson of the UAW

Ford National Negotiating Committee, and represents Subcouncil 6 (Manufacturing); Mike Abell,

UAW Local 862, Louisville, Ky., Subcouncil 2 (Assembly) is co-chairperson of the committee; Jeff

Washington, UAW Local 900, Wayne, Mich., Subcouncil 2 (Assembly) is secretary of the commit-

tee; Bernie Ricke, UAW Local 600, Dearborn, Mich., Subcouncil 1 (Rouge); Davine El-Amin-

Wilson, UAW Local 600, Dearborn, Mich., Subcouncil 1 (Rouge); Dave Berry, UAW Local 36,

Wixom, Mich., Subcouncil 2 (Assembly); Chris Viscomi, UAW Local 2000, Sheffield Village, Ohio,

Subcouncil 3 (Skilled Trades); Chris Crump, UAW Local 600, Dearborn, Mich., Subcouncil 3

(Skilled Trades); Charlie Gangarossa, UAW Local 897, Buffalo, N.Y., Subcouncil 4 (Stamping);

Tim Levandusky, UAW Local 1250, Brook Park, Ohio, Subcouncil 4 (Stamping); Jeff Terry, Local

228, Sterling Heights, Mich., Subcouncil 5 (Engine, Transmission and Powertrain); Johnny Verellen,

UAW Local 400, Romeo, Mich., Subcouncil 5 (Engine, Transmission and Powertrain); Jodey Dunn,

UAW Local 723, Monroe, Mich., Subcouncil 6 (Manufacturing); Dave Rogers, UAW Local 249,

Pleasant Valley, Mo., Subcouncil 7 (Parts).

KeattsWashingtonAbellGoddardMcClain

Ricke Berry GangarossaEl-Amin-Wilson CrumpViscomi

VerellenLevandusky Terry Dunn Rogers

Curson Mason Gettelfinger King Fields-Jacobs Browning

Gayney Gafa

Ewing Carter

Sherrick Brooks

november 2007 uaw fordreport - uaw892.org · november 2007 the 2007 uaw ford national negotiating...

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