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Detroit Free Press from Detroit, Michigan • Page A8
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Detroit Free Press from Detroit, Michigan • Page A8

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Detroit, Michigan
Issue Date:
Page:
A8
Extracted Article Text (OCR)

8A WWW.FREEP.COM WEDNESDAY, OCT.19,2011 COVER STORIES The expected ratification of four-year labor contract with the UAW will remove a dark cloud hanging over UAW President Bob King from 2009. In the middle of worst recession in decades, the UAW and Ford at the time tried to persuade the 41,000 hourly workers to accept a second round of concessions. Ford wanted to match contract language General Motors and Chrysler negotiated with the UAW as those companies went through Chapter 11bankruptcy. But workers, who had already seen evidence of turnaround, rejected the deal. Since 2008, Ford has reported $14.2 billion in profits.

Last week, ratification of a new four-year agreement appeared to be in peril after plants in Chicago, Wayne and Saline voted against the deal. But by midday Tuesday, 63.2% of workers had voted in favor of the deal. Late Tuesday, Todd Dunn, president of UAW Local 862, said 53.3% of workers at Louisville Assembly and Kentucky Truck voted in favor of the agreement. While results from at least three plants in Ohio that employ more than 4,000 remain unknown, the Kentucky plants were viewed as the biggest remaining hurdle, and the number of workers there assured the contract would pass. think this is a positive re- flection on Bob leadership because he had a restive said Bob Clark, a former Ford labor negotiator who is now president of RWC Consulting.

Many Ford workers remain angry about CEO Alan compensation in 2010, concessions they made in 2009 and the lack of a raise in the past seven years. Workers stand to gain $10,000 in up-front bonuses and early profit-sharing payments and $1,500 in annual inflation protection bonuses from the new agreement. All those payments are taxable. Still, many longtime workers hoped they would win back cost-of-living increases and a higher hourly wage for the first time in seven years. Those hired after September 2007 at a lower wage will see their pay increase from $19.28 an hour.

contract also promises to deliver 5,750 new jobs and $6.2 billion in product commitments at plants in Michigan, Kentucky, Ohio, Missouri and New York. Jeff Wright, president of UAW Local 249 in Kansas City, where of workers approved the contract, said those commitments made a difference. Under the agreement, Ford plans to invest $1billion at the Kansas City plant to build the Transit, a replacement for the E-Series commercial van. a product to build is a big deal for any assembly Wright said. As Ford wrapped up voting Tuesday, 26,000 UAW-represented workers were just starting to vote on their tentative agreement.

Chrysler has promised to invest a total of $4.5 billion and create 2,100 jobs. On Tuesday, Chrysler said it planned to invest $165 million at its Sterling Heights Assembly Plant to add a body shop. It would add more than 1million square feet to the plant where the automaker builds the Chrysler 200 and Dodge Avenger midsize cars. The investment is in addition to a December announcement to invest $850 million at the plant to build a square-foot paint shop. Chrysler left the Sterling Heights plant out of its 2009 reorganization plan, but later reclaimed it to continue producing midsize sedans.

marks another milestone in the rags-to-riches story of the Sterling Heights Assembly Scott Garberding, senior vice president and head of manufacturing for Chrysler, said in a statement. CONTACT BRENT SNAVELY: 313-222-6512 OR UAW-Ford deal means relief Hourly workers said no to 2nd round of concessions in By BRENT SNAVELY FREE PRESS BUSINESS WRITER Close: $23.54 Close: $11.78 ues ay stoc per ormance GENERAL MOTORS FORD Cl Tuesday 34 36 38 30 32 24 26 28 $40 22 20 18 16 17 18 14 15 12 13 $19 11 10 9 Detroit Free PressSource: Free Press research Open: 23.19 Change: change: Open: 11.41 Change: change: Nov. 18 close: $34.19 Nov. 18 close: $16.12 DJFJAMAJSM 2010 2011 DJFJAMAJS 2010 2011 200 miles Louisville, Ky. Detroit Detroit Detroit BRIAN Free Press UAW President Bob King was praised.

had a restive a consultant said. Word that the FBI would investigate the Turkia Awada Mullin severance came Tuesday afternoon, hours after a hearing on the same issue before the state House Oversight, Reform and Ethics committee. The committee delayed a vote on a request from state Rep. John Olumba, D-Detroit, to have the state Attorney Office conduct the investigation into the growing Wayne County government scandal. General (Bill) Schuette commends the efforts of Rep.

Olumba today before the Legislature and has full faith in the FBI to conduct a thorough said John Sellek, aspokesman for Schuette. Typically, the Attorney Gen- turns county inves- tigationsover to the Prosecuting Attorneys Coordinating group made up of prosecutors from across the select a prosecutor. Wayne Prosecuting Attorney Kym Worthy had said she investigate the matter because of a potential conflict of investigating a fellow Wayne County elected official, County Executive Robert Ficano. Olumba said Tuesday that he just wanted a quick investigation before evidence could be destroyed. He said he plans to keep pushing for an investigation by the attorney generalun- til he hears personally that the FBI is taking on the matter.

The Wayne County Commis- sion also is investigating the severance payment to Mullin and her assistantand has scheduled a hearing for Thursday. The FBI has a history of investigating public corruption in Detroit and Wayne County during the last investigations of former Wayne County Executive Ed McNamara, the Detroit City Council and the administration of former Detroit Mayor Kwame Kilpatrick. Several prominent Detroit- ers, including former Councilwoman Monica Conyers and political consultant Sam Riddle, have gone to prison as a result of those investigations. Kilpatrick still awaits trial on public corruption charges brought by the federal government. CONTACT KATHLEEN GRAY: 313-223-4407 OR Vote delayed on AG probe of severance State rep: pushing for investigation By KATHLEEN GRAY FREE PRESS STAFF WRITER Status of the UAW contract votingat Ford Yes: 16,691 No: 9,698 Total: 26,389 As of Tuesday, of 41,000 workers had either voted or had an opportunity to vote..

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