Automotive News - March 31, 2008 - (Page 26)

26 • MARCH 31, 2008 Ford contract has unique take on core jobs New hires handled differently than at GM and Chrysler David Barkholz and Amy Wilson dbarkholz@crain.com DETROIT — Assembly line worker Jason Hillman thinks Ford Motor Co. is taking the fastest, most humane path to a lower paid work force. Hillman, 36, doesn’t want to spend the rest of his career affixing rear cross members to Ford Focus sedans at the Wayne assembly plant in suburban Detroit. Someday, he expects to move to an easier job off the line. He’ll take advantage of a provision in the new UAW contract whereby Ford won’t reserve nonproduction jobs for lower paid new hires. It is a key difference between the UAW’s Ford contract and its pacts with General Motors and Chrysler LLC. For the most part, GM and Chrysler will fill so-called noncore jobs such as maintenance and forklift driving with lower paid new hires. Today’s higher paid workers mostly will stay in core production jobs. The differences Alone among the Detroit 3, Ford will allow lower paid new hires to take either core production jobs or noncore ones, such as maintenance or forklift driving. Doing so Avoids filling key noncore posts solely with greenhorns Keeps less strenuous noncore jobs available for aging current employees May allow Ford to attain a lower wage work force faster Source: Ford Motor Co. 2 tiers, 2 categories “I’m glad Ford is making no distinction between core jobs and noncore jobs,” says Hillman, a 12-year Ford veteran. “It kind of defeats the whole purpose of seniority.” During last fall’s Detroit 3 negotiations, the UAW broke from its principle of equal pay for equal work, agreeing to a two-tier wage structure. Each of the Detroit 3 is offering buyout and early retirement packages. The new contracts allow the Detroit 3 to replace those who leave with workers paid half of what current workers get. GM and Chrysler agreed to pay the lower wage only for nonproduction jobs. Now GM, Chrysler and UAW locals are haggling over which jobs will be deemed core or noncore. Ford will allow new hires to fill production or nonproduction jobs alike, said Ford human resources chief Joe Laymon before he left the company last week. Ford thinks the flexibility will allow it to attain a lower cost work force faster because any job opening can be filled with a two-tier wage earner, Laymon said. Ford also was concerned that too much talent might be lost in key nonproduction jobs if those jobs were filled solely with new hires, he said. Not until ’09 The UAW negotiated a cap of 20 percent of all jobs going to two-tier workers. But Ford probably won’t do any significant hiring until at least 2009, Laymon said. Until then, any job openings are likely to go to laid-off workers or to workers who flow back to Ford from factories being sold by Ford’s Automotive Components Holdings LLC. Hillman is thankful for Ford’s approach. Nonproduction jobs are prized because they aren’t so hard on the body, he says. A stocky man, Hillman got accustomed to less strenuous work as a team leader at Ford’s Michigan Truck assembly plant next door. He guided a production team until the plant dropped a shift six months ago and he had to move over to a line job at the Wayne assembly plant. Says Hillman: “I liked being a team leader. But I like having a job, too.” c BMW sees new models as sales saviors Diana T. Kurylko dkurylko@crain.com NEW YORK — Economic woes have even BMW of North America worried about this year’s sales. But vehicles in two new segments will assure flat sales at a minimum and perhaps even an increase over 2007, says Tom Purves, CEO of BMW’s North American division. Purves says 1,000 of the new 1-series convertibles and coupes have been delivered. BMW’s entry car went on sale this month. The 3 series will continue to be BMW’s volume car, but the 1 series will help BMW increase its customer base, he says. BMW isn’t worried that the 1 series will cannibalize the 3 series — especially because the smaller cars are sportier. “We do not have big ambitions in terms of volume for the 1 series,” says Purves, who wouldn’t project annual 1-series sales. Buyers for the 1 series are being drawn from various segments — ranging from BMW owners who want a smaller premium car to conquest buyers new to the brand, Purves says. The X6 crossover goes on sale in April with a six-cylinder engine. The eight-cylinder version arrives in August. The X6 has coupelike styling but is clearly not a passenger car. BMW will sell the X6 as a sporty vehicle with considerably more capacity, Purves says. The key will be getting prospective buyers to drive the X6. Purves says the X6 will likely be purchased by people who never considered buying an SUV-like vehicle. He declined to give a sales forecast.c http://autonews.com/Nissan50

Table of Contents Feed for the Digital Edition of Automotive News - March 31, 2008

Axle strike leads GM to alter production plan Industry expert Ferron joins Automotive News Group Hummer adds E85 models Lear expands in China Ford spills the beans on car seats Concern ... confidence ... curiosity — welcome to America, Tata Expect most Ford-bred executives to stay put Tip for Tata: Let British brands be British brands Dana CEO sees need for growth in Asia Chrysler: Any deal for partner would be done by Cerberus Farley retools Flex marketing strategy Malibu attracts import-minded buyers European purchasing execs to suppliers: Costs must fall Reynolds removes dealership modems New Saturn ads will promote Aura, Vue, Outlook This Spring Hill launch is a fraction of the first one GM works on small global car Hal Riney, Saturn campaign creator, dies Dealer sours on China importer Secret computer lets Nissan planner peek into future XM-Sirius merger: Lower prices, more choices? Key Chrysler product developer resigns Ford's new boss in HR plans no major changes Wagener to replace Pfeiffer as Mercedes design chief It's time to break the glass ceiling Autos don't cause all global warming Toyota plumbed the depths of Scion Customer loyalty is serious business Future bright for Tata brands Dauch sends wrong signals as Axle strike drags Yanase opened Japan to Western cars Fewer dealers, sure, but more brands What if Ahn falls short? Want to inspire Lori Queen? Just say no Hanwha to build GM Powertrain assembly line Toyota enters untapped Korea, home of Hyundai James O'Rourke Jr. Picture This -- March 31st, 2008 Lexus pays dealers for innovations Suppliers to the 2009 Dodge Journey Ricardo center has battery focus Howa USA opens interior parts plant in Kentucky N.Y. show suggests a future of smart powertrains, muscle BMW sees new models as sales saviors Ford contract has unique take on core jobs 6 more PACE-setters in auto innovation Buy-here, pay-here may grow Dealers Mercedes SL: A fresh face — with 1 flaw Ex-Chrysler design chief John Herlitz dead at 65 Future could be bright for Jag, Land Rover Land Rover in good shape, but challenges remain Fuel economy fines loom for Tata As segment shrinks, Chrysler minivan output takes a big dip Mercedes names 27 AMG dealers Continental to cut jobs Cobalt SS price: $22,995 Kia opens Ga. training center Nissan idles Mexico plant Plastech legal bill: $1 million for a month Magna will add 3 plants in Mexico El Camino diehards say Pontiac G8 should have been a Chevy No 2nd chance for Nasser, other Ford alums Buick grabs a name from the past After short list, a short stay for Laymon Lori Queen or Ellery Queen? Daimler's mum on BMW Southern supplier strategy Tracing the Camaro's bloodline Alfa searches for a U.S. factory

Automotive News - March 31, 2008

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