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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.

Fields 'required' to use private aircraft, could make $5.25M as Ford CEO this year

Mark Fields' travels on the friendly skies will soon be a relatively personal affair, as the new CEO at Ford will be required to resume air travel via the company's private planes. Fields caught plenty of flak in 2007 for flying on the company's dime to visit his family in Florida. He's since flown commercial.
According to Ford spokesperson Susan Krusel, who spoke to Bloomberg, Fields (pictured above right, with Bill Ford, Jr. at center and Alan Mulally at left) will switch to private travel "for safety and to maximize his availability for company business." In addition to his new travel arrangements, the 53-year-old exec's salary and bonuses have been revealed.
Regulatory filings by Ford revealed that Fields, whose first day in the big chair was July 1, will receive a base salary this year of $1.25 million and he'll be eligible for $3.5 million in bonuses, both of which are lower than Alan Mulally's $2 million salary and $5.88 million in bonuses received last year. That's also lower than General Motors CEO Mary Barra's alleged $1.6-million salary and considerably less than Sergio Marchionne's $3.19-million fixed salary from Fiat. Despite falling short of other CEOs, Fields' new pay still represents a 33-percent increase over his pay as Chief Operating Officer.

Ford, Alcoa announce next generation of aluminum lightweighting for F-150

Ford likes what it has seen with the use of aluminum in its world-beating F-150 pickup trucks. Now, the Blue Oval is working with Alcoa to use that company's Micromill material to increase the amount of aluminum in Ford vehicles. In fact, Ford will start using Micromill on 2016 model-year F-150s later this year, and will double the material's use in 2017. The purpose, as you might suspect, is light weighting, which allows Ford to boost towing capacity while adding as little weight as possible. Ford will be the first automaker to use Micromill, and will use it in both structural components and exterior panels. Micromill's rolling-mill system cuts the time it takes to turn molten metal into coil to 20 minutes from about 20 days. Already, Ford has had positive results by using aluminum on its leading pickup truck model. In April, it was announced that the 2015 Ford F-150 achieved a five-star Overall Vehicle Score in the National Highway Traffic Safety Administration's testing. Safety features like inflatable seat belts, adaptive steering columns and a forward collision warning system helped matters. General Motors may have taken note of those results, even after running an ad campaign touting its continued use of steel over aluminum. Last month, GM said it would sink $877 million into its Flint, MI, truck factory. Reuters said much of the expense was to convert many of the bodies for models like the Chevrolet Silverado and GMC Sierra pickups into aluminum. You can take a look at Ford's press release below. Ford Motor Company and Alcoa Inc. are collaborating to produce next-generation automotive aluminum alloys that are more formable and design-friendly. Ford will use Alcoa's Micromill® material in multiple components on the 2016 F-150 – becoming the first automaker to use the advanced automotive aluminum commercially. The companies entered into a joint development agreement to collaborate on next-generation aluminum alloys for automotive parts using Micromill™ technology. ''Light-weighting enables us to design vehicles with great customer attributes – like the F-150, which can tow more, haul more, accelerate quicker and stop faster than the previous F-150, and is more fuel-efficient than ever," said Raj Nair, Ford group vice president and chief technical officer, Global Product Development.