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Ford: Deal nearly eliminates labor cost gap with Japanese

DETROIT — A new contract with the United Auto Workers has nearly eliminated a $30-per-hour labor cost gap with Japanese competitors, setting up Ford for a return to profitability, the automaker said Thursday, according to USA Today.

Marty Mulloy, the company's vice president for labor affairs, said shifting Ford's long-term retiree health care liability to a union-run trust and a new lower-tier wage scale will remove much of the gap.

"I'd say very close but not all the way," he said during a conference call to explain the landmark four-year deal with the UAW.

The union announced Wednesday that Ford's 54,000 UAW workers overwhelmingly ratified the contract, reached Nov. 3 after a marathon bargaining session.

Posted by Peter C. T. Elsworth  at 3:07 PM to Ford | Permalink

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