Ford and UAW Nearing Agreement on Contract Changes

DETROIT (Reuters) - Ford Motor Co is getting close to a deal revising its contract with the United Auto Workers, according to a person briefed on six-week-old talks in which the automaker has aimed to gain concessions the union has already granted to GM and Chrysler.

Local officials representing U.S. hourly workers at Ford have been summoned by union leadership to Detroit on Tuesday for briefings on the talks over changes Ford seeks in its existing agreement with the UAW. Those talks started formally in late August.

In previous contract talks with Ford and other automakers, UAW leadership has used meetings in Detroit to brief local officials on the outlines of tentative agreements shortly before the proposals are brought to ratification votes.

Ford spokeswoman Marcey Evans said the automaker was continuing to work with the UAW to improve competitiveness.

"We are making progress together, but we consider our discussions to be private and we have nothing to announce," Evans said on Friday.

The UAW had no immediate comment.

The source spoke on condition of anonymity because the discussions between the UAW and Ford are ongoing.

The UAW reached four-year contracts with all three Detroit automakers in 2007, but has agreed to make unprecedented mid-contract concessions to the companies amid the severe recession and deep downturn in auto industry sales.

UAW workers at Ford agreed to mid-contract concessions early in 2009, ahead of General Motors Co and Chrysler, and Ford has aimed the latest discussions at addressing further cuts granted by the union to those cross-town rivals.

The agreements with GM and Chrysler include a no-strike clause for the next contract, fewer skilled-trades classifications and wage freezes for new hires.

GM and Chrysler both have gone through government-supported bankruptcies, while Ford has not sought emergency U.S. government loans and has said it expects to return to at least break-even in 2011.