UAW Wins Product and Investment Guarantees
in U.S. Manufacturing Plants
A key goal for UAW bargainers during these negotiations was to retain and expand the employment available to UAW members at Ford’s U.S. facilities. We succeeded in winning unprecedented guarantees to allocate specific products to UAW Ford assembly, stamping, engine, transmission axle and component plants.
Major New Investments
The UAW won commitments from Ford to build five new flexible body shops in UAW Ford assembly plants, a commitment to invest $200 million in new technology and equipment in UAW Ford stamping plants, a $20 million tool and die investment in Dearborn, Mich., and substantial new investments in UAW Ford powertrain operations.
As a result of this agreement, several Ford manufacturing facilities that were previously identified for closure by the company will remain open. UAW negotiators were able to win one-year extensions for two plants slated for closure – Twin Cities Assembly and Cleveland Casting.
These groundbreaking product and investment commitments, along with a moratorium on outsourcing and an agreement to insource new work, will protect the jobs of tens of thousands of UAW workers and will help to sustain Ford as a high value-added manufacturer with a strong base of employment and production in the United States.
In addition, these commitments will have a positive effect on the employment of thousands of workers at related supplier plants and will help maintain the contribution of Ford facilities to the local and regional economies in which they are located.
Ford Commits to Insourcing
In response to our bargaining team’s demand that Ford take action to maintain and expand its U.S. manufacturing base, the company has agreed to insource work totaling more than 1,500 jobs during the life of the agreement. The work will be retained for the term of the 2007 National Agreement, or for the lifecyle of the product, whichever is longer.
In addition, more than 1,700 jobs will be evaluated for insourcing.
Moratorium on Outsourcing
Except for certain actions already identified, the company has agreed to a total moratorium on new outsourcing of UAW Ford work from UAW Ford facilities through the term of this agreement. The moratorium will protect current UAW jobs and allow UAW Ford workers to focus on winning new work for our facilities.
Plant Closing and Sale Moratorium
Ford has agreed that it will not close, idle, nor partially or wholly sell, spin off, split off, consolidate or otherwise dispose of, in any form, any plant, asset or business unit of any type beyond those which have already been identified. Three facilities have been identified by Ford as exempt from the plant closing moratorium: Twin Cities Assembly, Cleveland Casting and Batavia Transmission.
Union Has Voice in Ford Decision-Making
After years of watching the company lose market share and seeing our communities lose good-paying manufacturing jobs, UAW negotiators made it a top priority to ensure that UAW members have input into company decision-making.
For the first time ever, the union won agreement that the vice president and director of the UAW National Ford Department will serve as a member of the company’s Manufacturing Operating Committee, where critical decisions are made about current operations and future product. This will ensure that UAW Ford workers have a seat at the table during discussions about the future of Ford Motor Co.
Union Wins Involvement in Supplier Initiatives
For the first time, union members will have direct involvement in efforts to maintain and improve supplier operations.
As customers of supplier plants, UAW Ford workers see first hand the critical impact that suppliers can have on production, quality and consumer acceptance of Ford vehicles. Strong partnerships between Ford and its suppliers can enhance our job security, because a well-functioning supply chain is essential to achieving world-class vehicle quality.
To enhance and coordinate initiatives to help suppliers improve productivity, quality, health and safety and also address workplace culture issues, two new positions, funded by the UAW Ford National Programs Center, will be devoted to Supplier Support Initiatives. UAW Ford workers now will have a greater opportunity to assist supplier companies in reducing waste, controlling costs and improving quality, often improving the job and income security of our UAW supplier members.