UAW Rank and File Approves Chrysler Contract, Ford Next

After disagreements over wage concessions and job security guarantees, a slim majority of United Auto Workers members has ratified a 4-year national labor contract with Chrysler LLC.

Saturday's final tally of UAW members found 56% of production workers, 51% of skilled-trade workers, 94% of office and clerical workers, and 79% of engineering workers, voting in favor of the deal.

Last to vote were 3,400 Chrysler Belvedere Assembly workers. Belvedere rejected the contract, 55-45%.

A bulge of votes in favor from the Detroit area carried the new contract.

The new Chrysler deal shifts retiree health care costs to a union-run trust fund, and significantly lowers wages for around 11,000 non-core, non-assembly workers.

A four-year moratorium on Chrysler plant closures was part of the agreement. I do not see how Cerberus, owners of Chrysler, can keep this promise.

In my opinion, too many Chrysler products are not going to be competitive in 2008-2012. The company will close some production lines.

The Chrysler contract approval leaves only Ford Motor Co. left to cut a union deal.

Ford is in real financial trouble and may not survive without big concessions from the union.The Ford turnaround plan calls for shutting down 16 plants by 2012.

Ford simply cannot guarantee future union jobs, or any other kind.

With US plants operating at less than 80 percent of capacity, Ford is burning borrowed cash. Ford must close factories.

It wouldn't be easy for Ford management to decide which products to kill even without the rank and file fantasy of job security agreements.