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Ford, UAW pass deadline without agreement
September 15, 1996Web posted at: 8:20 a.m. EDT
DEARBORN, Michigan (CNN) -- Contract talks between negotiators for Ford and the United Auto Workers dragged on past a deadline Saturday, but UAW leaders told workers not to go on strike.
The union did not formally extend Ford's three-year contract with the workers, which expired at midnight, but the automaker remained optimistic that an agreement would be reached.
Ford spokesman Jon Harmon reported Saturday night that
"important issues remained unresolved, but the tone of the
discussions remains constructive." At 2 a.m. EDT Sunday,
Harmon said his statement still applied. (14 sec/153K AIFF or WAV sound) 
"They told us to keep working but there's been no formal extension," said Jerry Klein, president of UAW Local 249 in Kansas, City, Missouri. "We're just sitting in the prairie waiting."
UAW negotiators want the formal right to strike over company decisions to contract parts work to outside, non-union suppliers, a source monitoring the talks said. The automaker argues that some degree of outsourcing is needed to keep costs down and prices competitive, but the union wants the practice limited to preserve employees' jobs.
While 105,000 Ford employees are covered by the talks, another 300,000 auto workers with General Motors and Chrysler are watching closely because the UAW intends to use the Ford agreement as a pattern for talks with other companies.
Other issues under negotiation include decreasing the time it takes new auto workers to reach pay parity with those hired earlier. Under the present contract, it takes three years to do so.
According to some newspaper reports, another issue still on the table is the so-called "25 and out" plan. Currently, UAW members must work at least 30 years before retiring with full benefits, but the union would like to reduce that by five years.
In recent negotiations, contract talks have gone beyond the expiration deadline. The same could be true this time, because the UAW has extended its contracts with GM and Chrysler beyond Saturday midnight.
The Associated Press and Reuters contributed to this report.
Related stories:
- CNNfn: Ford, UAW talk security - September 13, 1996
- CNNfn: UAW to target Ford - September 4, 1996
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