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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 upgrade kit takes Focus ST to 275 hp and 296 lb-ft

If you drive a 2015 Ford Focus ST but are already jealous of the 345-horsepower 2016 Focus RS that's on the horizon, Ford Performance has a new upgrade kit that could be a great compromise. Developed by the Blue Oval experts at Mountune, the MP275 setup takes the hot hatch's output to 275 hp and 296 pound-feet of torque when running on 93-octane fuel. Those are gains of 23 hp and 26 lb-ft, respectively. Providing much of the kit's extra oomph is a recalibrated ECU with more aggressive engine mapping. The company claims that the upgrade also improves throttle response, and it keeps the Focus ST 50-state emissions legal. In addition, customers get a Mountune high-flow intercooler, a new air intake, and all of the necessary hardware to mount the components in the engine bay. For those concerned about reliability, when an authorized Ford Performance technician installs the parts, the Focus maintains the factory warranty. The MP275 kit currently retails for $1,900 on the Ford Performance website. For added protection during harsh weather, customers can also get an end cap for the cone air filter for $15. Related Video: Ford Performance Upgrade Kit for 2015 Focus ST Boosts Output to 275 Horsepower, 296 Lb.-Ft. Torque • Ford Performance mountune Focus ST kit for 2015 optimizes performance without sacrificing reliability • Sold through Ford Performance Parts, the kit maintains the base car's factory-backed three-year/36,000-mile warranty • Package adds 23 horsepower and 26 lb.-ft. of torque DEARBORN, Mich., Aug. 18, 2015 – Focus ST customers can get more performance out of their vehicle thanks to a new kit from Ford. And on that front, the new Focus ST mountune upgrade kit delivers in spades. The idea of a street-legal, reliable, largely stock 2.0-liter four-cylinder engine making nearly 300 lb.-ft. of torque might have seemed ludicrous 10 years ago, but the components of the MP275 Focus ST performance upgrade not only combine to produce up to 296 lb.-ft. of torque with 93-octane fuel, they are designed for maximum reliability as well. "The 2015 Focus ST MP275 upgrade is the latest addition to Ford Performance's vast Focus and Fiesta performance catalog that gives enthusiasts the components they need to take their car to the next level," said Adam Gair, product manager, Ford Performance.

William Clay Ford Sr. dead at 88

William Clay Ford, retired vice chairman of Ford Motor Company and the last surviving grandchild of company founder Henry Ford, died this morning after a bout with pneumonia. He was 88.
Ford spent 57 years with his grandfather's company, joining the board of directors in 1948 before graduating from college. Ford also held a position as chairman of the design committee, as well as the chairman of the executive committee and vice chairman of the Board of Directors during his tenure with the company. In a 2013 Detroit Free Press story, retired CFO Allan Gilmour said Ford had an eye for design, and was once able to pick out when a fiberglass model of a Ford Contour was asymmetrical, off by an inch on one side. He retired and assumed the position of director emeritus in 2005.
"My father was a great business leader and humanitarian who dedicated his life to the company and the community," said Bill Ford, Jr., Ford's current executive chairman. "He also was a wonderful family man, a loving husband, father, grandfather and great-grandfather. He will be greatly missed by everyone who knew him, yet he will continue to inspire us all."