Ford Motor Company, which made a whopping $12 billion loss last year and has mortgaged its assets, including its blue oval logo to fund its turnaround is looking to its workers to regain back its position. The workers of the company are expected to vote a landmark tentative contract this week with the United Auto Workers that might help the ailing automaker.
The contract, which needs to be approved by the workers require Ford to contribute $13.2 billion to a union-run trust towards the company’s $22 billion in retiree health care liabilities. An entry-level worker will be given a lower compensation. New hires will be paid a starting rate of $14.20 per hour down from the previous $28.88 per hour starting pay for the average Ford hourly worker.
In exchange of the wage cut the automaker will not close any of its existing plants beyond those it had already promised to close. Ford’s share in the US market has fallen from 19% to 15% since 2003.
Similar contracts had earlier helped many companies to survive. Workers of General Motor Corp and Chrysler LLC had earlier ratified similar contracts.
Source:yahoo
Image:science clarified
