FoMoCo announced today that it has reached a tentative agreement with the UAW on modifications to the Voluntary Employee Beneficiary Association (VEBA) retiree health care trust. Ford said that the agreement allows the company to make up to 50 percent of its scheduled payments into the VEBA using Ford common stock.
The automaker said that it will consider each payment when it is due and use its discretion in determining whether cash or stock makes sense at the time.
Joe Hinrichs, group vice president, Global Manufacturing and Labor Affairs for FoMoCo said that the automaker will “continue to work with all of our stakeholders to participate in the current industry restructuring and improve our company”s overall competitiveness.”
Hinrichs said that if the agreement is finalized, after the required court approval, the move will allow Ford to become competitive with foreign rivals U.S. manufacturing operations.