UAW at Louisville Ford plants rejects contract

Louisville area Ford workers' overwhelming rejection of a proposed national agreement Tuesday raised serious doubts, at least for now, about whether the automaker and the UAW can settle a contract quickly.

Similar rejections at several other Ford facilities put the entire national contract in jeopardy, and with it, Ford's pledge of $9 billion re-investments in its North American plants.

Settles said he was "optimistic" that it would ultimately be ratified once workers at all of Ford's plants across the nation have voted.

But, "if we thought there was another dollar on the table we would have got it in the first agreement", he added.

Ford needs a majority of those who vote among its 52,900 union workers for it to be ratified.

The vote began at union locals last week and will extend through Friday.

However, after workers at the Kansas City, Mo., plant and the Louisville, Ky., plant rejected the deal, Chicago's vote was being closely watched.

The UAW will need to keep the votes at least close at Local 600 as well as Local 551, which is linked to the Chicago Assembly Plant, for the contract to pass, said Kristin Dziczek, labor analyst with the Center for Automotive Research. "And they don't understand the process, so we try to do the best we possibly can to educate them on the process".

Going into the vote there were already rising concerns about the contract being in peril even though it delivers signing bonuses and early profit sharing payments of $10,000 to workers along with raises for both entry level and longtime workers. A return to the bargaining table isn't likely to yield a richer agreement without putting USA investment and job security at risk, UAW officials said. "A lot of people, especially younger people, think you just go and open door No. 2 and see if something is behind door No. 2. That is not how real negotiations go".

With Ford earning record profit in North America this year, workers are calling for an end to a two-tier wage division that has helped make the company more competitive on labor costs but pays newer hires about $9-an-hour less than longer- tenured workers for doing the same work.

"I am confident that our membership, when informed properly...will support this agreement", said Bernie Ricke, president of UAW Local 600.