November 14, 2024

Ford Contract With Union is Ratified

Local 600 in Dearborn, Mich., the largest local for the union, disclosed the development Tuesday on its Facebook page, citing national union officials. U.A.W. Local 862 in Louisville, Ky., said its members at two plants voted 53.3 percent in favor of the four-year agreement. The Louisville plants build pickups and sport-utility vehicles and employ 5,397 workers. Ford’s 40,600 American hourly workers were to conclude voting Tuesday.

Michele Martin, a spokesman for the union, did not immediately answer a voice message and an e-mail seeking comment.

U.A.W. members at Ford shifted from voting 53 percent against the contract last Friday to 63.2 percent in favor as of Tuesday morning. Ford is offering 12,000 new jobs, $6.2 billion in factory upgrades and bonus and profit-sharing payments per worker this year that total as much as $10,000. A lack of a wage increase was responsible for much of the initial opposition.

“People are saying there is room for improvement, but they’ll vote in favor of this contract because it means jobs,” said Jerome Williams, president of U.A.W. Local 2000, which represents 1,880 workers voting today at Ford’s Ohio van plant. “A few people are saying we gave up monetary concessions and other things that they’d like to see come back, and rightfully so. But the economic situation isn’t the best right now.”

The U.A.W. negotiated contracts for 113,000 workers for the first time since General Motors and Chrysler went bankrupt in 2009. G.M. workers endorsed a new deal last month and workers at Chrysler begin voting this week. Only workers at Ford, which avoided Chapter 11, could strike in these contract talks because G.M. and Chrysler employees agreed not to walk out as part of their government-backed rescues.

Ford has promised investments totaling $1.26 billion at the two Kentucky assembly plants. .

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China Carmakers Are Told to Seek Fuel Efficiency, Not Sales

A succession of government officials at a weekend conference called for China’s automakers to shift their focus from making ever more cars and toward producing more fuel-efficient and more advanced models, including gasoline-electric hybrids and all-electric cars.

“The government must take the leading role in controlling unrealistic growth” of the auto industry, Jiang Kejun, the influential director of the Energy Research Institute at the National Development and Reform Commission, China’s top economic planning agency, said Sunday during a speech at the conference.

Li Shize, the director of pollution control at the Ministry of Environmental Protection, echoed Mr. Jiang, saying that “for the auto industry to develop, we should not try to sell more, but to improve the units sold.”

The government officials did not say how they would restrict growth. But growth has already slowed partly because of limits on the number of new cars that can be registered each month in Beijing, and mostly because government incentives expired at the start of this year. Those incentives were subsidies for rural buyers and a two-year reduction in the sales tax on new family vehicles.

The officials’ remarks strongly suggested that the Chinese auto industry’s lobbying for the reinstatement of the incentives would fail and that restrictions on registering new cars would be extended to more cities.

Any slowdown in growth is likely to shock the world’s automakers. Practically every American, European, Japanese and South Korean automaker is expanding in China, including General Motors, Ford Motor, Nissan Motor and PSA Peugeot Citroën. Chinese automakers are building assembly plants even faster.

Years of double-digit expansion have increased Chinese auto production to almost 17 million cars, minivans, pickup trucks and sport utility vehicles last year, from fewer than two million in 2000, making it almost twice the size of the United States or Japanese industries and far larger than any European country’s auto manufacturing sector.

Growth in China culminated in a burst of sales in 2009 and 2010 as the government cut taxes on car sales to stimulate the economy during the global economic downturn.

J.D. Power Associates, the global consults, estimated last month that China would have a manufacturing capacity of 31 million vehicles by 2013. Yet the domestic market has decelerated sharply this year, with sales of family vehicles up just 5 percent in the first seven months, compared with the period a year earlier. By contrast, sales had soared 33 percent in 2010, compared with 2009.

Much slower sales growth this year has prompted strong lobbying by the auto industry for a renewal of government incentives. But if anything, policy makers seem to be leaning toward more limits to address China’s steeply rising dependence on imported oil and its traffic jams, air pollution and shortages of land in many areas for more road construction.

Officials in Beijing have urged the industry to improve technology for years. But they clearly shifted their tone at the conference this weekend in calling for curbs on the industry’s overall growth in sales and production.

Many Chinese automakers are partly or entirely owned by municipal or provincial governments, however, and these lower tiers of government have pushed their manufacturers to expand as fast as possible to maximize jobs and economic output.

But limits on car sales in big cities may pressure Chinese automakers to slow down. The municipal government of Beijing, China’s largest single market with 4 percent of sales last year, stunned the industry last December by imposing stringent limits on the number of new-car registrations each month, effectively imposing a decline in sales of close to 70 percent.

Industry executives argued that this was purely a response to severe traffic jams in Beijing and lobbied for the central government not to let other cities take the same course.

Article source: http://feeds.nytimes.com/click.phdo?i=d7685d4ad761b1c47976296104028ef8