Ford Workers Agree to Pay Raise
Workers at the Ford plant in Vsevolozhsk, Leningrad Region, decided against a strike yesterday in a secret ballot vote. Instead, they accepted a management offer of 16-21 percent salary increases along with other bonuses. Experts estimate that the offer is costing Ford an extra $5 million, on top of an estimated loss of $100 million from the last strike. Those expenses may be reflected in the price of the Ford Focus.
According to union leader Alexey Etmanov, the average pay at the plant has not risen to 25,500 rubles per month, and the starting wage is 19,000 rubles. In addition, employees will receive discounts when buying Ford cars, free lunch and a corporate savings program. The agreement was the result of negotiations between the plant management and the union negotiating committee that began after a 25-day strike at the plant at the end of last year.
The company made its offer on January 30, the day before workers intended to strike if their demands received no response. Workers were demanding a 30-percent pay hike and the shortening of the night shift to seven hours after a strike that began on November 20, 2007. A shift of non-striking workers began at the plant a week later and a second shift was begun on December 10. Nonetheless, production at the plant sank from 300 to 100 vehicles a day. The strike ended on December 17, when the sides signed an agreement on continuing negotiations.
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All the Article in Russian as of Feb. 05, 2008
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