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  • Additional United Auto Worker Battles for Ford and GM

Additional United Auto Worker Battles for Ford and GM

Erick Ayapana
May 10, 2011
Ford Reiterates Wage Gap
Contracts for United Auto Worker (UAW) members at Ford are about to expire this September and the automaker is once again focusing on the wage gap that exists between its UAW employees and competitors who don't employ UAW members.
Photo 2/3   |   Bob King Ron Gettelfinger Bill Ford Alan Mulally
The wage gap is one of the most recent topics posted on www.fordahead.com, a website detailing the automaker's plans and current progress on its road to recovery and profitability. According to the site, most of Ford's 40,600 hourly workers in the United States earn $58 an hour. On the other hand, Ford's international competitors that manufacture cars in the U.S. (i.e. Toyota and Hyundai) hire non-union employees who make an average of $50 an hour; a gap of $8 an hour. While this is a huge improvement over the $27 gap in 2007, Ford states that the gap must be reduced further in order to improve profits, to remain competitive and to add more employees to its workforce.
Both sides claim the current relationship is good and that talks should go smoothly, though UAW president Bob King recently took issue with news of Alan Mulally's $26.5 million compensation and $56.5 million stock reward from last year.
Photo 3/3   |   Bob King Alan Mullaly Factory
GM Workers File Suit Against Company and Union
Meanwhile, General Motors is being sued by 28 employees from its Lordstown, Ohio factory for $3- 4 million in back pay. According to a report by Michigan Live, the employees claim they have "been improperly classified as temporary employees since being hired in October 2006. They were terminated in April 2007 and then brought back six months later. The workers were briefly paid the same wage as permanent employees, but the lawsuit argues they were reclassified as temporary workers in June 2008, a move that cut their pay by more than 40 percent." They also are suing and accusing the UAW of refusing to file a complaint on their behalf. Should the suit succeed, the UAW may have to pay some or all of the money owed if GM can prove they weren't properly notified of the worker's claims.
Source: Ford, Michigan Live
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