Ford Expects 500 Million Dollars Annual Savings Through Uaw Agreement

03.11.09 | FL News Team

Ford Motor Company expects to save about 500-million-dollars annually through its new agreement with the United Auto Workers union. That contract will reduce the average wage for Ford's 42-thousand union workers to about 55-dollars an hour. Workers with foreign-based automakers in the U.S. get paid an average of about 48-dollars per hour.

Under the new UAW contract, Ford can suspend some performance and bonus payments and cut both overtime costs and one paid holiday. It also calls for the funding of a union retiree healthcare trust to be restructured.

Ford officials say the company should be able to weather this tough economy without federal bailout loans. The Detroit automaker incurred a record 14-point-seven-billion-dollar net loss in 2008.