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| CAW Local 584, national parts distribution centre for Ford of Canada. There are some 500 active and retired members of our Local. |
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INPLANT REPORT
July 27, 2009
Last week the United Auto Workers union (UAW) made adjustments to their VEBA agreement with the Ford Motor Company. The VEBA is responsible for providing retirees with their health care benefits. Earlier in the year, the UAW signed an agreement that allowed Ford to cover half of their contributions to this fund with stock instead of cash. The fixed stock price that was agreed to was roughly $2 per share. The UAW has now agreed that the stock contributions of the VEBA will be funded at market value instead of the $2 per share price. This could literally mean a savings of billions of dollars for Ford and will also mean the share prices will remain higher than if the original agreement had been maintained. The UAW retirees were in for somewhat of a windfall before, but now their benefit levels are tied directly to the success of the company. This is an enormous amount of money to hand over to the company with one agreement.
For the rest of the report, please see July 27 Web report in News and Events section of web site.
For regularly updated stories, please see the News and Events page of our site
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