Ford, UAW Optimistic Over New Contract Negotiations : Automobiles: No strike is expected, but tough follow-up talks on health costs are likely with General Motors.

Negotiators for the United Auto Workers and Ford Motor Co. worked over the weekend to iron out differences over health care and pay scales, seeking a new contract agreement with two days left on the existing pact.

The current three-year contract expires at midnight Tuesday. A new deal, covering 97,000 Ford workers, would set a pattern for union talks with General Motors Corp. and Chrysler Corp.

Both Ford and the UAW expressed optimism Sunday that an agreement could be reached without a strike. But an extension of the current contract is possible. The last two opening rounds of auto talks--in 1987 at Ford and in 1990 at General Motors Corp.--went into overtime.

“There’s been a good many subcommittee meetings over the weekend and the bargainers are focusing on a narrowing set of issues,” said Ford spokesman Dave Caplan. “We still feel like we have more than adequate time to reach a peaceful settlement.”

Negotiators would not discuss specifics of the talks, but union local officials briefed on the discussions said Ford’s insistence that UAW members shoulder more of their health care costs was taking center stage.

The UAW has rejected company proposals for out-of-pocket contributions from its members. But the union is considering deferring some future cost-of-living increases to health care for Ford’s hourly workers, which costs the company $309 per car produced.

That compares with about $380 per car at Chrysler and $711 per car at GM, according to Sean McAlinden, a labor researcher at the University of Michigan.

More likely than a financial contribution, according to union sources who spoke on the condition of anonymity, was a change in the way health benefits are delivered. Ford would see some savings if all hourly workers get their health care from the same network of providers.

Whatever is decided on health care at Ford will likely be imposed on Chrysler and GM, which is most in need to cutting health care costs. GM is billing salaried employees more for their health benefits and will begin assessing retirees for part of their health care Jan. 1.

Last week’s acknowledgement by General Motors of changes in benefits was seen by many as sending a message to the UAW before talks begin at GM.

Another issue said to be getting a lot of attention at Ford was the proposal that new hires get a lower base wage and take longer to reach the current rate.

Because it doesn’t affect current workers, the union has expressed some openness to extending the so-called “grow-in” period for new hires’ wages in exchange for having one-for-one replacement in all Ford operations when current workers quit or retire.

The current agreement calls for one new hire for every two who retire. That rule largely has been followed in Ford assembly operations but was sometimes ignored at parts plants.

Ford proposed that new hires be paid 65% of the base wage to start and take six years to catch up. The union countered with three years and a starting wage of 75%. Current new hires earn 85% of the base wage for their first 18 months.