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Overnight Open Thread

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3 wood8/29/2009 5:24:33 am PDT

With 14.5 million people out of work, the UAW is resisting further concessions:

Ford Said to Work to Bridge Gap With UAW Opposing Concessions


Aug. 29 (Bloomberg) — Ford Motor Co., seeking labor concessions granted to U.S. rivals, is working to bridge a gap with the United Auto Workers amid union resistance to a second round of 2009 givebacks, people familiar with the talks said.

Ford’s labor chief, Joe Hinrichs, was told by UAW officials when bargaining began on Aug. 25 that members would reject further concessions, said two of the people, who asked not to be identified because the sessions are private. Senior negotiators held a daylong meeting yesterday, a third person said.

“Their differences are significant and difficult, but they’re talking,” said Harley Shaiken, labor professor at the University of California at Berkeley. “A long discussion means you have something to talk about; stalemates tend to be short.”

Ford, the only U.S. automaker to avoid bankruptcy, is trying for parity in labor costs with General Motors Co. and Chrysler Group LLC.

To help those companies restructure, the UAW agreed to a six-year pay freeze for entry-level employees, a no- strike accord until 2015 and fewer union job classifications.

The UAW has been reluctant to grant more concessions to Dearborn, Michigan-based Ford after a March accord to give up annual bonuses and cost-of-living increases and accept reduced layoff benefits.

The company said the changes will produce $500 million in annual labor savings.