UAW and Ford begin negotiations on new contract

Posted at 11:49 AM, Oct 28, 2019
and last updated 2019-10-28 11:49:24-04

(WXYZ) — The United Auto Workers union and Ford began negotiations on Monday morning on a new contract.

The negotiations started just days after UAW-GM workers voted to ratify a contract after a 40-day strike.

In a statement, Ford said in part, "we look forward to reaching a fair agreement that helps Ford enhance its competitiveness and preserve and protect good-paying manufacturing jobs."

Right now, it's not clear if there will be another strike, but it's unlikely that either Ford, or Fiat Chrysler, will like the terms reached between the union and GM.

GM traded the ability to close the three factories in Lordstown, Ohio; Warren, Michigan; and near Baltimore for higher labor costs, David Kudla, chief investment strategist for Mainstay Capital Management of Grand Blanc, Michigan, wrote in a note to investors. The contract maintains worker health benefits with low premiums, something that both Ford and FCA wanted to change when negotiations began.

"Ford and FCA didn't have three factories that they wanted to close, but will have to work around this new framework for higher wages and unchanged health care that the UAW and GM have set," wrote Kudla.