2011 Ford F150 Lariat on 2040-cars

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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.

Amelia Island 2013: 50 years of the Ferrari-slaying Ford GT40

Originally developed with the sole purpose of being a Ferrari rival to compete at the 24 Hours of Le Mans, the Ford GT40 became a prominent racing machine in the 1960s in both Europe and the US. Not wanting to leave such an important car out of the fun, the 2013 Amelia Island Concours d'Elegance also took time out from its other celebrations to recognize the 50-year anniversary of the GT40.
Over its short lifespan, the GT40 was offered in a handful of configurations, but the classic short-tailed (Mk I and Mk II) bodystyles were well represented... especially in Gulf livery. James Glickenhaus (of Ferrari P4/5 fame) had his bright yellow Mk IV in the field, and there were several others in this bodystyle, including one that has seen plenty of time on the track judging by its chipped-up nose.
As a fitting statement for the car's lengthy racing history, GT40 Chassis Number 1075 won this year's Concours de Sport award. This car took home the checkered flag at Le Mans in 1968 and 1969, and racked up a total of six wins in just 11 races.

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.