UAW President to address union, Ford negotiators (Reuters)

DETROIT (Reuters) – United Auto Workers President Bob King is expected to address union and Ford Motor Co officials on Friday in the final stages of negotiating a new labor deal that workers expect to be richer than the one just reached with General Motors Co.

King's visit comes a day after more intensive negotiations began between the UAW and Ford, making the automaker the main focus of bargaining even though the sides have been meeting for almost two months. Ford was the only U.S. automaker to avoid bankruptcy.

"Both our negotiators and the company have submitted their final resolutions," the UAW said in a memo. "On Friday, President Bob King is expected to ... address the negotiators and the national Ford department staff."

UAW Vice President Jimmy Settles, the lead negotiator with Ford, has said he expects "high-level financial discussions" to begin on Monday, the union added.

Financial issues typically are addressed in the final stages of negotiations.

Shares of Ford were down 1.2 percent at $9.50 in trading before the market opened.

The union began an intense focus on Ford a day after failing to strike a deal with Chrysler Group LLC and extending its contract with the Fiat-controlled automaker until October 19.

Meanwhile, UAW-represented workers began to vote on Thursday on a tentative four-year deal reached late last week with GM. Union officials hope to wrap up ratification votes on that deal by September 29.

Union leaders on Tuesday released highlights touting jobs retained and added, and bonus payments in the proposed GM deal. On Thursday, dissident union group autoworkercaravan.org said the freeze in cost-of-living increases amounted to an annual pay cut over the next four years.

The Detroit labor talks will set wages and benefits for about 112,500 unionized auto workers and set a benchmark for compensation at auto parts suppliers and nonunion plants run by Asian and German automakers.

New four-year contracts for GM and Chrysler workers would be the first since those two companies were bailed out by the Obama administration in 2009. UAW-represented auto workers have gone without a base pay increase since 2003.

The talks with Ford, playing out at its Dearborn, Michigan, headquarters also known as "the Glass House," will be patterned roughly after the deal that covers 48,500 GM employees.

The GM contract would keep or create more than 6,000 factory jobs, raise wages for entry-level workers and guarantee all workers bonuses of at least $11,500 over four years.

The uncertainty around the outlook for auto sales in 2012 and the risk of a renewed U.S. recession have made the Detroit automakers reluctant to offer traditional wage increases.

However, Ford's roughly 41,000 UAW-represented workers have retained the right to strike and have the highest expectations for wages and bonuses because of the automaker's performance. Ford has not had a UAW strike since 1976.

An unsettled grievance also could complicate talks. The union has said Ford broke a pledge to treat employees equally when it restored raises and 401(k) matches for white-collar workers without making a similar payout to factory workers.

There is also simmering resentment among UAW workers over Ford Chief Executive Alan Mulally's compensation of $26.5 million last year, which King previously called "morally wrong."

The UAW also may seek to have Ford shift work from Mexico to U.S. plants, something it touted in its deal with GM. Ford builds the Fusion mid-sized sedan and Fiesta small car, and also has an engine plant in Mexico.

(Reporting by Ben Klayman; Editing by Lisa Von Ahn)

Posted in: business,news