UPDATE 2-UAW rejects new concessions to Ford; no new talks

Mon Nov 2, 2009 5:34pm EST

 * UAW membership rejects deal with Ford
 * Says Ford's Q3 results reflect workers' past concessions
 * Says will not return to bargaining table
 (Adds Ford comments, other details, Canadian union approval)
 By Soyoung Kim and Bernie Woodall
 DETROIT, Nov 2 (Reuters) - The United Auto Workers union
overwhelmingly rejected a proposed cost-cutting deal with Ford
Motor Co (F.N) on Monday, delivering a setback for the
automaker as it seeks to bring down labor costs in line with
U.S. rivals.
 The UAW said that 70 percent of production workers and 75
percent of skilled trade workers voted to reject a proposed
agreement the union leadership and Ford negotiated in October
to change the 2007 four-year contract.
 The deal would have brought the automaker's labor costs in
line with General Motors Co [GM.UL] and Chrysler Group LLC,
both of which won additional concessions as part of their
government-financed bankruptcies.
 UAW President Ron Gettelfinger said in a statement the
union's past concessions have positioned Ford to be a strong
competitor in a tough market and its surprise quarterly net
profit announced early on Monday provided further evidence of
the contributions the workers have made. [ID:nN02411585]
 "While we will not be returning to the bargaining table,
our ... membership will continue to work with Ford on a daily
basis in an effort to keep new products coming into our
plants," Gettelfinger said.
 Analysts said that the relative health of Ford compared
with domestic rivals GM and Chrysler was a key factor in the
rejection of the proposed terms, but Gettelfinger said that was
not a factor.
 The UAW represents about 41,000 U.S. factory workers at
Ford.
 The current contract expires in 2011.
 Gettelfinger said last Friday that there was no need to
return to the negotiating table with Ford until 2011.
 In a statement issued after the UAW announcement, Ford said
it was "disappointed that the additional changes were not
ratified."
 Ford said it wanted to keep the tradition of "pattern
bargaining," in which the UAW and the automakers maintain
similar contracts among major automakers that do not favor one
over the other.
 Ford, like the UAW, said it will continue an ongoing
dialogue on the major issues between automaker and the union
that represents its workers.
 "Moving forward, we will work with the UAW to discuss the
next steps to ensure Ford remains competitive so we can
continue to make product commitments and invest in our
manufacturing facilities here in the United States," Ford
said.
 The proposals rejected by workers included a "no-strike"
provision on wages and benefits that became a lightning rod for
opposition.
 The contract would have given workers a one-time bonus of
$1,000 to be paid in March 2010. That would have cost Ford $41
million.
 It would have frozen wages of entry-level workers who are
hired at $14 per hour. And it would not set a cap on the number
of entry-level workers Ford could hire until 2015.
 CANADA OK
 Over the weekend, the Canadian Auto Workers union voted 83
percent in favor of a separate agreement with Ford that freezes
wages for about 7,000 workers into September 2012 in return for
protecting most factory jobs in Canada.
 About 10 percent of Ford's North American output comes from
its plants in Canada.
 (Reporting by Soyoung Kim and Bernie Woodall; editing by
Bernard Orr and Matthew Lewis)

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