UAW protests against Ford for giving salaried raises

The United Auto Workers, which gave up bonuses and cost-of-living increases at Ford Motor Co. last year, is waging a campaign against the carmaker to protest reinstatement of raises and benefits for salaried employees.

UAW Vice President Bob King, nominated as the union's next president, is asking all 41,000 of Ford's hourly U.S. workers to file a "policy grievance" against the company for restoring raises, 401(k) matches and tuition assistance to white-collar employees, said Mark Caruso, president of a union local in Saline, Michigan. King has said he protested directly to Ford.

"We're disappointed," said Nick Kottalis, president of the Dearborn, Michigan, truck unit of UAW Local 600. "They're violating the policy that called for equity of sacrifice in the modifications we passed in 2009."

Ford's hourly workers agreed in March to give up annual bonuses, cost-of-living increases and some unemployment benefits that the company said would save $500 million in annual labor costs. Ford, the only major U.S. automaker to avoid bankruptcy, posted a surprise $997 million third-quarter profit last year after losing a record $14.7 billion in 2008.

"This sends a signal that people are angry; it's a warning," said Harley Shaiken, labor professor at the University of California at Berkeley. "Ford understands the importance of good relations with the union. I suspect the company will be in the position to redress something, whether restoring something to hourly workers or rescinding something to salaried workers."

Added Concessions Rejected

The Dearborn-based company told employees it wouldn't grant raises last year, and said it suspended tuition assistance in 2008 and 401(k) matches last year.

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