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Second-tier UAW workers promoted for first time after Ford hits quota

The United Auto Workers put out a statement on Friday that 55 Ford workers chosen by seniority would be moved from the Tier 2, entry-level pay rate of around $19 per hour to the Tier 1, non-entry-level rate of about $28 per hour. One of the stipulations in the 2011 UAW-Ford agreement was that only 20-percent of the total hourly workforce could be paid the Tier 2 wages agreed upon in 2007; after that, those workers had to be moved to Tier 1. Even so, the new Tier 1 status makes them less expensive to Ford than veteran Tier 1 workers because they receive fewer benefits. However, Automotive News had reported that same day that Ford was 69 workers shy of the limit, and when AN asked Ford about the situation Ford said it had "some room" on the entry-level roster. If workers do move to the higher pay grade, it will be the first time that's happened since the two-tier system was agreed. But it sounds like there's going to be some haggling between the UAW and Ford before that happens. Ford is the only one of the Detroit 3 automakers to have to work with a cap, since it didn't go through bankruptcy proceedings during The Great Recession; General Motors and Chrysler jettisoned the cap in 2009. GM is said to have 16 percent of its hourly workers at Tier 2 while Chrysler has 42 percent, but Fiat-Chrysler CEO Sergio Marchionne has long been opposed to the two-wage system. The UAW is preparing for its 2015 negotiations with the US automakers. It wants to eliminate the difference in pay by going to the higher scale, if there is a consensus among automakers it seems to be that they also want a single wage, but less than the higher scale, with the addition of profit-based bonuses. The recent statement from the labor union is below. UAW President Dennis Williams and UAW-Ford Vice President Jimmy Settles announced today that the union is delivering on its promise to convert workers DETROIT, Jan. 30, 2015 /PRNewswire/ -- UAW President Dennis Williams and UAW-Ford Vice President Jimmy Settles announced today that the union is delivering on its promise to convert workers making entry-level wages to traditional employees. "The 2011 UAW-Ford agreement allows for a contractual limit of entry-level employees. Once that threshold is surpassed, entry-level employees convert by seniority to 'regular, non-entry level employment.' At this time, fifty-five UAW-Ford workers will receive the wage increases, which put them in the category of non entry-level employment.

Ford acquires Livio to bolster connectivity biz

Ford Motor Company has announced the acquisition of Livio, a Ferndale, MI-based software development company best known for aftermarket in-car connectivity devices, but also as a supplier of technology for proprietary systems for automakers. Livio, co-founded by Sigal and Massimo Baldini, will be a wholly owned subsidiary of Ford Global Technologies.
"With the additional expertise Livio provides us, Ford intends to continue to lead the next generation of in-car connectivity with technology advancements that give consumers more options to access their devices on the go," said Paul Mascarenas, chief technical officer and vice president, Ford Research and Innovation, in a statement.
Ford is clearly trying to beef up its in-house tech capability around telematics and device connectivity. While the Blue Oval has been a leader in these areas with SYNC and MyFord Touch in terms of getting the systems into as many cars as possible, the execution of the applications have been criticized for glitches.

Ford recalling 433k cars for engines that don't shut off

Ford Motor Company has announced an enormous recall affecting 433,000 vehicles built between April 2014 and June 2015. There's a problem with the body control module in the affected vehicles that can prevent them from turning off, even if the key is removed from the ignition or stop/start button has been pressed. Individual models include the Focus and C-Max, both built at the Michigan Assembly Plant. The defective Foci were built between June 17, 2014 and June 12, 2015, while the C-Maxes were built between April 22, 2014 and June 12, 2015. Also affected are model year 2015 Escape CUVs, built at the Louisville Assembly Plant in Kentucky, between April 1, 2014 and June 12, 2015. As is usually the case, the overwhelming majority of vehicles – 374,381 – are registered in the United States, while the 52,180 are in Canada and 5,135 are in Mexico. The Blue Oval is not aware of any injuries or accidents due to this defect. Individual consumers, meanwhile, will need to report into dealers to have the body control module's software updated. Scroll down for the brief press release from Ford. Related Video: FORD ISSUES SAFETY COMPLIANCE RECALL IN NORTH AMERICA DEARBORN, Mich., July 2, 2015 – Ford Motor Company is issuing a safety compliance recall for approximately 433,000 vehicles in North America, including certain 2015 Focus, C-MAX and Escape vehicles, for an issue with the body control module. In these vehicles, it could be possible for the engine to continue to run after turning the ignition key to the "off" position and removing the key, or after pressing the Engine Start/Stop button. This is a compliance issue with FMVSS 114 regarding theft protection and rollaway prevention. Ford is not aware of any accidents or injuries associated with this issue. Affected vehicles include certain 2015 Focus vehicles built at Michigan Assembly Plant from June 17, 2014, through June 12, 2015; certain 2015 C-MAX vehicles built at Michigan Assembly Plant from April 22, 2014, through June 12, 2015; and certain 2015 Escape vehicles built at Louisville Assembly Plant from April 1, 2014, through June 12, 2015. There are 432,096 vehicles in North America, including 374,781 in the United States and federalized territories, 52,180 in Canada and 5,135 in Mexico. Dealers will update the body control module software at no cost to the customer.