UAW union leaders suggest approval of Ford labor deal

UAW union leaders suggest approval of Ford labor deal

DETROIT (Reuters) – United Auto Workers leaders from Ford Motor Co’s U.S. plants on Friday advised approval of a tentative labor arrangement that would enable the No. 2 U.S. automaker to avoid a strike like the one that cost its larger competing General Motors Co about $3 billion.

FILE IMAGE: UAW President Gary Jones (L) shakes hands with Ford Motor Co Chairman Bill Ford at the start of agreement talks between the union and the car manufacturer in Detroit, Michigan, U.S., July 15,2019 REUTERS/Nick Carey

The union relied on Ford to negotiate a new four-year agreement after ratifying a contract last week with GM following a 40- day U.S. strike that closed down practically all of that business’s North American operations. Ford and the UAW quickly reached a tentative deal on Wednesday.

” This agreement continues a strong pattern that offers all workers a course to conventional wages and maintains the job security and benefits our members are worthy of,” UAW President Gary Jones said in a statement.

Ford confirmed the handle a statement and declined more remark.

The offer now must be ratified by the 55,000 UAW employees at Ford, with voting going through Nov.15 While GM’s offer was authorized, ratification is not a certainty, as union members at Fiat Chrysler Cars NV in 2015 rejected the first variation of an agreement.

In-depth terms of the Ford deal echoed those consented to with GM, as the union generally utilizes the first offer as a pattern for those that follow. The UAW said the deal consisted of arrangements by Ford to invest more than $6 billion in its U.S. plants, and to develop or retain more than 8,500 UAW tasks.

The costs consists of a $1.1 billion financial investment in Ford’s Wayne, Michigan, pickup truck plant; $1 billion for the Louisville, Kentucky, plant, where Ford makes pickups and SUVs; and $900 million in an Ohio plant where it produces heavy-duty pickup. A new unnamed vehicle will be contributed to the Ohio plant in2023

The offer likewise consists of structure hybrid and completely electric versions of numerous SUV designs and the very popular F-150 pickup truck, the union stated.

Full-time UAW members at Ford will get a signing perk of $9,000, but the offer will allow the Dearborn, Michigan, company to close an engine plant in Romeo, Michigan.

The deal consists of pay raises and lump-sum payments over the life of the agreement, a pathway to full-time work for momentary workers and the same healthcare protection.

Once the Ford deal is validated, the UAW will rely on Fiat Chrysler to finish its quadrennial talks with the Detroit automakers.

The talks have actually at times been overshadowed by a continuous federal corruption probe that has included several UAW senior leaders and been linked to Jones. A UAW spokesman on Friday declined to attend to the probe.

Reporting by Ben Klayman and Nick Carey in Detroit; Modifying by Sandra Maler and Matthew Lewis

Learn More