As national labor talks are quickly approaching, the UAW is seeking to resolve a grievance that almost nearly 35,000 workers signed against Ford for restoring merit pay for salaried workers in 2010.
These Ford workers, who haven’t received a raise in years, hope to resolve the matter soon. The Free Press made this report based on a summary of a UAW meeting that took place in late May.
However, several UAW leaders told the Free Press that the matter would only have to be resolved before a national contract is sent to members for a vote.
Talks will begin in July between Ford and the UAW to replace a four-year labor contract that expires on Sept. 14. The report stated that Detroit attorney David Grissom had been selected as an arbitrator to help the UAW and Ford settle the issue.
The conflict started in 2010 when Ford chose to reinstate the merit pay raises and 401(k) matches only for its salaried workers, and not its hourly workers. Since that time, almost 35,000 UAW members have signed grievances.
As of the end of 2010, Ford had about 40,600 hourly workers in the U.S. The union asserts that Ford's move was in violation of a provision in the current contract that demands that all of Ford's stakeholders have to make equal sacrifices so that Ford’s finances get on solid footing once again.
In the last two years, Ford has earned a combined $9.28 billion. It gave profit-sharing checks to its hourly workers. It averaged $450 for each worker for 2009 while it gave $5,000 to each for 2010.