United Auto Workers approve new 4-year contract with Ford

The contract will cost Ford $700 million in the fourth quarter, mainly to pay ratification bonuses to its 55,000 hourly workers. (AFP)
Updated 16 November 2019

United Auto Workers approve new 4-year contract with Ford

  • Union: 56.3 percent of workers who voted were in favor of the deal
  • The contract will cost Ford $700 million in the fourth quarter

DETROIT: Members of the United Auto Workers union at Ford Motor Co. voted Friday to approve a new contract with the company.
The union said in a statement that 56.3 percent of workers who voted were in favor of the deal.
The four-year agreement reached Oct. 31 gives workers a mix of pay raises and lump-sum payments as well as a $9,000 ratification bonus. The company also promises $6 billion in US factory investments. Ford gets to close an engine factory near Detroit but its 600 workers there will get jobs at a nearby plant.
Acting Union President Rory Gamble called the agreement “life changing” for workers and said it eliminates perpetual temporary employees and different wage tiers for workers doing the same jobs. Ford said the deal increases its competitiveness, keeping its cost structure similar to its US-based competitors. It also secures 8,500 US hourly jobs.
The contract will cost Ford $700 million in the fourth quarter, mainly to pay ratification bonuses to its 55,000 hourly workers.
Union spokesman Brian Rothenberg said Friday night he did not have vote totals.
The deal is similar to one ratified by General Motors workers after a bitter 40-day strike this fall.
On Monday, the union will focus bargaining on Fiat Chrysler, the last of the Detroit Three automakers to settle.


Big oil feels the heat on climate as industry leader promises: ‘We will be different’

Updated 22 January 2020

Big oil feels the heat on climate as industry leader promises: ‘We will be different’

  • Trump singles out ‘prophets of doom’ for attack
  • Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal

LONDON: Teenage environmental activist Greta Thunberg slammed inaction over climate change as the global oil industry found itself under intense scrutiny on the opening day of the World Economic Forum in Davos.

The teenage campaigner went head to head with US President Donald Trump, who dismissed climate “prophets of doom” in his speech.
She in turn shrugged off the US president’s pledge to join the economic forum’s initiative to plant 1 trillion trees to help capture carbon dioxide.
“Planting trees is good, of course, but it’s nowhere near enough,” Thunberg said. “It cannot replace mitigation. We need to start listening to the science and treat this crisis with the importance it deserves,” the 17-year-old said.
The 50th meeting of the World Economic Forum was dominated by the global threat posed by climate change and the carbon economy.
The environmental focus of Davos 2020 caps a year when carbon emissions from fossil fuels hit a record high, and the devastating effects of bushfires in Australia and other climate disasters dominated the news.
Oil company executives from the Gulf and elsewhere are in the spotlight at this year’s Davos meeting as they come under increased pressure to demonstrate how they are reducing their carbon footprint.
“We are not only fighting for our industry’s life but fighting for people to understand the things that we are doing,” said Vicki Hollub, CEO of Occidental, the US-based oil giant with extensive oil operations in the Gulf. “As an industry when we could be different — we will be different.”

‘Planting trees is good, but nowhere near enough,’ activist Greta Thunberg told Davos. (Shutterstock)

She said the company was getting close to being able to sequester significant volumes of CO2 in the US Permian Basin, the heartland of the American shale oil industry which is increasingly in competition with the conventional oil producers of the Arabian Gulf.
“The Permian Basin has the capacity to store 150 gigatons of CO2. That would be 28 years of emissions in the US. That’s the prize for us and that’s the opportunity. People say if you’re sequestering in an oil reservoir then you are producing more oil, but the reality is that it takes more CO2 to inject into a reservoir than the barrel of oil that it makes come out,” Hollub said.
The challenge Occidental and other oil companies face is to make investors understand what is happening in this area of carbon sequesteration, she added.
The investment community at Davos is also looking hard at the oil industry in the face of mounting investor concerns.
Greenpeace told the Davos gathering that the world’s largest banks, funds and insurance companies had invested $1.4 trillion in fossil fuel companies since the Paris climate deal. It accused some of these groups of failing to live up to the World Economic Forum goal of “improving the state of the world.”