Job Security Program Improved

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

Attrition Replacement

In the proposed program, attrition replacement covers 100 percent of the membership, with only two exceptions: Attrition replacement will be deferred during a market-related layoff. And when a plant has workers on protected status, attrition replacement will be handled in accordance with the placement guidelines in Appendix N, Attachment C of the National Agreement. The number of jobs outsourced minus the number of jobs insourced, per Appendix P, will be treated as attrition on a unit basis.

When a traditional worker quits, dies, retires or is placed on salary, he or she will be replaced as soon as possible, but in no longer than 30 days. Production employees will be replaced as follows:

• Recalling a seniority worker from layoff/in-plant protected status from the facility, then from the preferential placement list or from employees otherwise available through the placement hierarchy, up to and including volunteers from in-zone ACH locations, entry-level employees and rehires-new hires.

Skilled-trades workers will be replaced as follows:

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

• Transfer a skilled-trades employee working in production into the trade, or place an apprentice or retrained journeyperson.

• Hire a new skilled-trades worker.

Protected Status Employee

A protected status employee will remain so for no more than two years if there are job openings available. If during the two-year period no jobs are available, workers remain on protected status. If an employee on protected status receives two job offers within the two-year period and declines the second placement offer, he or she will be placed on inactive status, with an immediate cessation of all company-provided income, but will remain eligible for a placement offer.

Protected Status Employee Pay Options

An employee being placed in protected status will have a choice of two options: report to the work facility for a mandatory nontraditional work assignment and receive 100 percent of his or her regular straight-time hourly rate of pay for a 40-hour week, or do not report for work, but receive 85 percent of his or her regular straight-time rate of pay, exclusive of any premiums, for a 40-hour week.

Under either option, the employee in protected status will continue to earn pension credits on the basis of 40 hours per week and will continue to receive all active employee benefits and provisions. In certain circumstances, the national parties may agree that placement on protected status at the 85 percent rate is mandatory.

Attrition Replacement Obligations to be Fulfilled

All opening hiring obligations resulting from the 1999 and 2003 Collective Bargaining Agreements will be fulfilled through the hiring of full-time and temporary part-time employees and the conversion of Visteon hourly employees at former Ford locations to Ford full-time hourly employment status, the return of the Sterling and Rawsonville plants to Ford, and two separate flowback actions that provided eligible Ford employees at Visteon/ACH locations opportunities to return to Ford locations during the 2003 Agreement.

During the 2007 Agreement, the placement of interested Ford hourly employees at closed/idled locations into available openings at Ford locations, the preferential hiring of temporary employees into full-time jobs, the hiring of new entry-level hourly employees and the introduction of new work into Ford facilities will aid in the creation of new job and hiring opportunities in support of the replacement obligation fulfillment.

Relocation Allowances Increased

When employees are relocated between plants at least 50 miles apart, they will be given a choice between Basic Relocation Allowance and Enhanced Moving Allowance.

Basic Relocation Allowance provides the employee $4,800 and enables the employee to seek a Return to Basic Unit after working at the new plant for six months or upon indefinite layoff from the new plant.

Enhanced Relocation Allowance provides the employee a maximum of $30,000, $6,000 of which is provided as a signing bonus to cover miscellaneous up-front cash expenditures. An additional $16,000 will be paid to the employee at the new location. After one year at the new location, the employee may receive $8,000 if they continue to be an employee there. Employees receiving the Enhanced Relocation Allowance will terminate their seniority at all other Ford locations and will not be eligible for recall/rehire or Return to Basic Unit.

Return to Basic Unit

Eligible employees will automatically be considered to return to the plant which is their basic unit or, in the case of employees from closed locations, to return to other plants in the same zone of their basic unit. Eligible employees include those who previously were ineligible because of a failure to make a timely application or because of a refusal of a previous Return to Basic Unit opportunity.

Buyout Packages

Nationwide buyout packages will be offered based on mutual agreement by the parties.

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