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Detroit 3 and UAW set for showdown over tiered wages

This week, thousands of United Auto Workers will converge on Cobo Center in Detroit for the Special Convention on Collective Bargaining, an every-four-year event that lets members tell UAW leaders what the negotiating priorities should be during contract negotiations. This is where a lot of sand and a lot of lines start coming together in preparation for contract negotiations between the UAW and the Detroit 3 automakers, which will happen later this year. Number one on the UAW agenda is the end of the two-tier wage system created in 2007 to help the automakers get through bankruptcy; veteran workers are paid the Tier 1 rate of around $29.00 per hour, new hires are paid the Tier 2 rate of between $15 and $20 and get about half the benefits of Tier 1. Tier 2 hiring has been an undoubted success for the automakers, allowing them to keep factories in the US and hire more workers. By agreement, it is capped at a certain percentage of each automaker's workforce, and while the union's ultimate position is to get rid of the dual-scale system entirely; one leader said Ford could easily afford the $335 million it would take to convert all its workers to Tier 1 out of its $6.9 billion in 2014 North American profit, and General Motors could do the same out of the $5 billion it is handing to investors through the (admittedly forced) share buyback. Other delegates say that at the very least they'd be happy with enforcement of the current caps in the new contract. The automakers, conversely, would welcome expansion of the Tier 2 ranks. Including benefits, import automakers pay workers "in the high $40 range" per hour, according to an analyst, while Ford and GM pay about $59 in wages and benefits per hour. More Tier 2 workers on the rolls would let those two companies get labor cost parity with the competition. Fiat-Chrysler pays wages closer to the imports because of special exceptions in its UAW contract that allow unlimited Tier 2 hiring; those exceptions will end on September 14 and bring FCA into line with the other domestics, unless the new contract maintains them. FCA CEO Sergio Marchionne is opposed to the two-tier system, having called it "almost offensive." One analyst says the UAW might win a sizable pay raise for Tier 2 and a small increase for Tier 1, but the keystone issue will be how the hiring matrix can help the automakers keep overall wages in line with the imports.

Ford announces fix for 2021 Expedition and Lincoln Navigator fires

In the middle of May, Ford announced a recall of around 39,000 Ford Expeditions and Lincoln Navigators from the 2021 model year due to fires starting under the hoods of the SUVs. At the time, Ford had received 16 incident reports, 14 of them happening with rental vehicles. The automaker cautioned owners to park their vehicles outside and away from structures while engineers figured out what was happening and how to fix the problem. Since that May announcement, five more fires have been reported, four of them rental vehicles, and there's been one burn injury. The company announced it understands the problem and has a fix, at the same time widening the scope of potentially affected vehicles. Instead of recalling 39,013 units built between December 1, 2020, and April 30, 2021, the recall now includes 66,221 vehicles assembled from July 27, 2020, to Aug. 31, 2021. The suspected culprit is a circuit board provided by a supplier that changed manufacturing location during the pandemic. Ford's press release on the matter stated that "circuit boards produced at this facility are uniquely susceptible to a high-current short." The affected vehicles are fitted with either an 800-watt or 700-watt cooling fan system. About a third of the recalled population are fitted with the former, and should get a quick fix at the dealer. On these SUVs, techs will inspect the battery junction box. If they find evidence of melting, they'll replace the whole box. If not, they'll simply remove the engine fan ground wire that runs to the battery junction box; since this ground relay is redundant, the change doesn't alter operation of the fans.  Owners with the 700-watt system might need to wait until September for a fix. These vehicles need an auxiliary relay box with a wire jumper, but the parts aren't available now.   Ford's notifying all owners via the FordPass app, and will follow up with owners of the 700-watt cooling system once the parts are in stock. Until their vehicles are fixed, Ford says the SUVs are safe to drive but that they should still be parked outside and away from structures. The somewhat mixed messaging — 'Yes, your cars are safe to drive, but they could catch fire so don't park them near anything flammable' — encouraged a group of owners to file suit against Ford. Owners with questions can contact Ford customer service at 866-436-7332 and reference recall No. 22S36.

Last 2014 Ford Shelby GT500 Convertible nets $500k for charity at Barrett-Jackson [w/video]

The last 2014 Ford Shelby GT500 Convertible was sold on Saturday at a Barrett-Jackson auction in Reno, Nevada, for $500,000. Ford donated the Mustang to be auctioned for charity, and all of the money is going to the Brain Injury Association of America.
Parnelli Jones, winner of the 1963 Indianapolis 500, was there on behalf of the BIAA with his son Page, who suffered a brain injury in a sprint car crash in 1994. The bidding increased quickly, reaching $500k in no time, spreading a bit more hope to people who live with brain injuries.
The winning bidder will be able to choose the GT500's exterior, interior and stripe colors, and is scheduled to receive the car, signed by Parnelli Jones in appreciation for the donation, by the end of 2013. Watch the video below to see the auction-block action.