Ford, United Auto Workers reach tentative contract

Kris Alingod – AHN News Contributor

Detroit, MI, United States (AHN) – Ford has reached a tentative labor contract with union workers in more than two dozen plants nationwide.

The agreement with the United Auto Workers, which still requires ratification from members, will add 12,000 new jobs in the company’s facilities, 5,750 more than what Ford previously committed to the union.

The additional jobs includes positions in China, Japan and Mexico that Ford will bring back into the United States.

The UAW was also able to raise entry-level wages to $19.28 over the term of the contract, which will end in 2015. In addition, the union won a $6,000 settlement bonus for workers with a year or more of seniority, and $5,000 for those with less than a year.

John Fleming, Ford’s executive vice president for global manufacturing and labor affairs, said in a statement the tentative contract is “fair to employees” and “improves [the company's] competitiveness in the U.S.”

“UAW members sacrificed when the company was struggling, and this agreement ensures that our members will now share in Ford’s prosperity,” said union vice president Jimmy Settles.

Ford pledged $16 billion in total domestic investments, $6.2 billion of which will be used to produce upgraded vehicles and components in plants nationwide by 2015.

The investment also includes $1.1 billion in Kansas City, which Missouri Gov. Jay Nixon called a “historic development for next-generation manufacturing in the state.”

Dearborn-based Ford, the only American automaker not to receive a government bailout, was the second of Detroit’s Big Three to reach an agreement with the United Auto Workers.

General Motors ended negotiations with the union mid-September. The union ratified the contract that resulted in those talks by a 2:1 ratio.

The union, which represents more than 41,000 hourly and salary workers at 27 domestic Ford plants, now turns its focus to Chrysler, which Fiat acquired last year as part of the carmaker’s government-sponsored reorganization.

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