Ford Union Workers Reject Company's Efforts to Reduce Labor Costs

Ford Union Workers Reject Company's Efforts to Reduce Labor Costs

Crushed under the current financial situation, more and more companies are now looking to cut costs wherever possible, and so did Ford Motor Co., when it proposed contract changes to its union workers which reflected a definite cut in labor costs. The proposal has been rejected by Ford's workers, a decision reached via voting, which was carried out at two of the United Auto Workers' largest units in Kentucky and Dearborn.

As per figures reported on Saturday, most of the UAW member had voted against the proposal. The units collectively represent over 26,000 members. Fast approaching bankruptcy by Spring, Ford is looking to cut corners wherever possible. Although the union leadership had supported the proposed contract changes, general member voting sealed its fate otherwise.

Had Ford's new proposal passed, the wages of newly hired workers would have been frozen and the union would have been banned from going on a strike to demand a pay rise or benefits till 2015. As part of the concession, the automobile giant was offering to pay each worker a bonus of $1,000 in March, In addition, the company was agreeing to guarantee that new products would be assigned for production to some plants, a move which would have saved as many as 7,000 jobs.

With the deal now rejected, Ford is looking for other ways to save itself from possible bankruptcy and cut costs in other ways.

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