Press Release

UAW Announces Ratification Results of New Ford Contract

10/02/96

UAW President Stephen P. Yokich and UAW Vice President Ernest Lofton
Announce Approval of New Agreement With Ford

DETROIT, Sept. 30 -- UAW President Stephen P. Yokich and
Vice President Ernest Lofton announced that the Union's comprehensive
new agreement with Ford Motor Company has been ratified by a
90 percent majority in voting by UAW-represented production workers at
Ford facilities nationally. Skilled trades workers, who vote
separately on the agreement, approved the pact by 83 percent.

"We are delighted with the outstanding acceptance by Ford workers of
the new agreement," said Yokich and Lofton, director of the UAW
National Ford Department. "Obviously, the breakthroughs achieved by
the Union in 1996 on job security, higher wages, retirement income
gains, tuition assistance benefits, and other improvements were
factors in the strong favorable vote," they said.

Yokich and Lofton praised the 14-member UAW-Ford National Negotiating
Committee for "bringing a combination of determination and experience
to the bargaining table." They thanked UAW-Ford local union leaders
and members for "maintaining strong solidarity and support for the
negotiating team throughout the complex and difficult negotiating
process."

The UAW leaders also recognized "the genuine desire of the management
of Ford Motor Company to continue strengthening a constructive
relationship between the parties. We appreciated the involvement of
top company officers towards reaching an agreement that represents
progress and stability for Ford workers, for the company, and for the
communities in which UAW members live and work."

Among the highlights of the new, three-year agreement are expanded job
security protections, which provide a guaranteed minimum employment
floor of 95 percent of current covered jobs, incentives for insourcing
work and creating new jobs, and disincentives on outsourcing. Wages
and incomes are increased substantially through an up-front, lump-sum
payment of $2,000, followed by a 3 percent general base wage increase
in the second year and in the third year of the agreement,
cost-of-living allowance protection, and Christmas bonuses of up to
$600 each.

In addition to substantial improvements in basic pension plan benefits
and 30-and-Out early retirement benefits for workers who retire during
the new agreement, the Union negotiated lump-sum payments for retired
UAW-Ford workers that will have an inflation protection feature and
will be payable in December 1997 and December 1998.

The UAW broke new ground by negotiating employer-paid tuition
assistance payments of up to $1,000 per year for dependent children of
active UAW-Ford workers enrolled in college and other approved
post-secondary education and training. The Union also won tuition
assistance of up to $1,000 per year for retirees who enroll in courses
on-site at locations from which they retire.

Among other gains, Veterans Day will be provided as a paid holiday in
the third year of agreement, health care benefits are improved with
emphasis on quality, and group insurance benefits are
improved. Skilled trades workers will receive a 30-cent hourly tool
allowance beginning in the second year of the agreement, and Ford is
committed to indenture at least 1,200 new apprentices under the new
agreement.