Ford, union reach deal on small-car plant

DEARBORN, Mich., Oct. 9 (UPI) -- The United Auto Workers and Ford Motor Co. avoided wage changes in a tentative contract for workers at the Michigan Assembly Plant, a union official said.

The deal would allow Ford to go forward with plans to build the Ford Focus compact car at the plant, the Detroit Free Press reported Saturday.

The deal, although structured differently than one union workers at General Motors agreed to earlier in the week, could be critical for the future of the industry, as it allows Ford to make a profit with a small car.

At GM, workers agreed to a two-tier wage structure that sets some pay at $14 per hour and some at $28 per hour. Some GM workers, angered by the plan, have scheduled a protest, the newspaper said.

At Ford, however, "Right now, we are not talking about wages," said UAW Vice President Jimmy Settles.

"There are many ways to create efficiencies without looking at wages," he said.

Instead, the agreement calls for merging some job classifications and changes to maintenance work structures.

On Friday, while accepting the Edward H. McNamara Goodfellow of the Year Award, Ford Chief Executive Officer Alan Mulally said, "We are converting truck plants to car plants and making cars in the United States profitably."