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Ford, UAW Hash Out Details On VEBA Health Care Funding

Posted in auto industry, Ford, Newsworthy, Politics, SUV, Trucks by Suzanne Denbow | February 23rd, 2009 | Leave a Reply |


Today, Ford and the UAW announced they have reached a tentative agreement regarding the modifications made to the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust. As per the terms of the addendum, Ford will be permitted to substitute up to 50% of the payments made into the VEBA trust with common stock, allowing Ford to cut costs without cutting benefits. “We are pleased with this agreement,” Joe Hinrichs, group vice president, Global Manufacturing and Labor Affairs, Ford Motor Company, in a statement. “We will consider each payment when it is due and use our discretion in determining whether cash or stock makes sense at the time, balancing our liquidity needs and preserving shareholder value.”

Critical to Ford’s survival, Henrichs is hopeful the new missive will receive the necessary official approval from both the courts and the active body of UAW-Ford members. “The agreements, if finalized, will allow Ford to become competitive with foreign automakers’ U.S. manufacturing operations, and are critical to our efforts to operate through the current deep economic downturn without accessing government loans and continue to fully invest in our ONE Ford product plan.” Concluded Hinrichs, “All of us at Ford will continue to work with all of our stakeholders to participate in the current industry restructuring and improve our company’s overall competitiveness.”

Source: Ford Media

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