U.S.A.:Highlights of 2003 UAW-Ford contract
Automotive News / October 02, 2003
The following is a rundown of plant closings, pay increases and benefits offered under the ratified Ford-UAW contract.
Cleveland Aluminum Casting will close by the end of this year.
Vulcan Forge in Dearborn was idled in March and will close by the end of this year.
Edison (N.J.) Assembly Plant will close during the first quarter of 2004.
Production at Lorain Assembly Plant will be consolidated within the next four years with Ohio Assembly Plant in Avon Lake, about 17 miles away.
St. Louis Assembly Plant will be reduced to one shift of production next year.
Wage and Cash Payments:
A $3,000 cash payment in 2003, and a cash payment in 2004 that is equivalent to 3 percent of an employee’s wages.
A 2 percent general wage increase in 2005, and a 3 percent general wage increase in 2006.
A change in Cost of Living Allowance (COLA) formula to exclude the cost of medical inflation from Consumer Price Index (CPI) calculations.
A 30-cent diversion in COLA. Each year, beginning in December, the amount of COLA increase generated by the change in the CPI will be reduced by 2 cents. There are 15 such adjustments during the term of the contract, equaling 30 cents.
Pensions and Retiree Benefits:
Annual cash payments of $800 for current retirees.
Increased life benefits for future retirees of $4.20 per month for each year of service over the term of the agreement.
Two $1,000 vouchers – one during the first year and one during the third year of the contract. The vouchers may be used toward the purchase of a new Ford, Lincoln or Mercury vehicle.
Health Care Benefits:
Generic prescription drugs are required when available, and maintenance prescription refills must be purchased through a mail-order program.
Co-pays of $5 for generic drugs and $10 for brand-name drugs were negotiated. The co-pay was $5 for brand name drugs.
A new disease management program will help people at greater risk for certain diseases. By providing at-risk employees with early care, the onset of disease may be prevented or the severity may be mitigated. The program has the potential for long-term savings.
Improvements in some areas of coverage were negotiated. They include vision, dental and well-baby care.
The 20,000 UAW-represented Ford employees working in U.S. Visteon plants will have the opportunity to transfer to Ford plants as openings arise.
Ford employees cannot transfer to Visteon locations.
Visteon has the ability to negotiate in the near term competitive wages and benefits for new hires.
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....