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Ford CEO: UAW Deal Will Help Company
Friday October 12, 3:21 pm ET
By Tom Krisher, AP Auto Writer
Mulally: Framework of UAW Deals Will Help Ford Compete

DEARBORN, Mich. (AP) -- The main planks of the United Auto Workers union's deals with General Motors and Chrysler will help Ford Motor Co. become more competitive, Chief Executive Alan Mulally said Friday.

In an interview with The Associated Press, Mulally also said he speaks often with UAW President Ron Gettelfinger, whom he considers a business partner in turning around the automaker.

Ford is next up in negotiations with the labor union, which on Wednesday ratified a historic four-year deal with General Motors Corp. and reached a similar agreement with Chrysler LLC the same day. Before the deals were reached, the union went on strike against both companies.

"The basic framework, the elements of it are very transformational," Mulally said. "It'll increase our competitiveness tremendously."

Typically the UAW uses the contract with the first company, which this year was GM, as the pattern for bargaining with the other two U.S.-based automakers.

At the start of contract talks in July, all three companies were seeking to close a roughly $25-per-hour labor cost gap with Asian competitors who have factories in the United States.

Mulally would not say whether the GM and Chrysler contracts go far enough for Ford, nor would he discuss whether Ford could match job security guarantees that are in the GM contract.

"We're each in different situations," he said. "I am really looking forward to continuing to work with the UAW to increase the quality and competitiveness of Ford."