Ford workers agree to cost cutting

Ford workers in the US have agreed to a deal that will save the struggling car maker billions of dollars in health care costs.
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The deal allows Ford to cut labour costs and meet up to 50 per cent of its $13.2 billion ($20.6 billion AUD) obligation to a trust fund for retiree health care benefits with common stock instead of cash.

While Ford has repeatedly said it has enough cash to survive the downturn without Government aid, it has used the deep recession in the industry to seek concessions from the union.

Ford welcomed the deal, which it said would help it survive falling car sales amid the current economic downturn and assist it in becoming more competitive in the long-term.