In a deal that will allow Ford to use stock to fund up to half of its obligations to retiree health care trusts, the UAW members at FoMoCo have ratified changes to the independent Voluntary Employee Beneficiary Association (VEBA)
According to Automotive News, nearly 60 percent of the votes favored the measure.
“Once again UAW members have stepped up to make the difficult decisions necessary to deal with the reality of the current economy, the deteriorating auto industry as a whole and specifically the negative impact the economic climate is having on Ford Motor Co.,” said UAW President Ron Gettelfinger.
Gettelfinger called for “shared sacrifice” to rebuild the U.S. auto industry. Ford said that the changes will help keep Ford from asking for emergency aid from the government.
Last month, CEO Alan Mulally and Executive Chairman Bill Ford Jr. voluntarily took a 30 percent pay cut to show UAW workers that they aren”t the only ones being asked to take sacrifices.