The Romeo Engine Plant, which employs about 600 hours of UAW workers in Michigan, would close under a proposed tentative work agreement reached October 30, 2019 between Ford and the United Auto Workers union.
DETROIT – Ford Motor would shut down a Michigan engine plant and give full-time workers $ 9,000 ratification bonuses under a proposed tentative labor agreement reached Wednesday night with the United Auto Workers union, according to people familiar with the contract.
The plant scheduled for closure is Romeo Engine Plant, which employs about 600 hours of UAW workers, according to two people who agreed to speak on condition of anonymity because details have not been made public. No layoffs would occur as a result of the closure, according to the people.
Employees working at the facility would be offered jobs at a transmission facility about 1
If the contract is approved by union leaders and members, the facility will be the fifth facility to be closed as part of UAW's negotiations with the three major Detroit automakers. GM plans to close four facilities, including a large assembly plant in Ohio, as part of the deal. Fiat Chrysler has not reached a deal with UAW yet.
Ford's agreement, according to three people with knowledge of the discussions, also includes $ 9,000 ratification bonuses for full-time workers and $ 3,500 ratification bonuses for temporary workers.
Two people also confirmed that the agreement will include similar, if not the same, annual salary and lump sum in GM's contract. This agreement includes a 3% raise or a 4% one-time bonus each year of the contract.
UAW Wednesday said the deal includes $ 6 billion in new Ford investment and the creation or retention of 8,500 US jobs. Other details of the proposed contract were not disclosed.
GM agreed to $ 11,000 ratification bonuses for most of its approximately 48,000 UAW employees, but previous contracts have included lower bonuses for Ford and Fiat Chrysler employees.
The Ford contract is probably at least a week or two away from being approved or rejected by union members. It still needs approval from local union leaders who will meet Friday in Detroit to vote on the deal. If local UAW leaders approve the proposed contract, Ford's approximately 55,000 UAW members must then vote on it.
The UAW, if the agreement is ratified, will next turn its attention to Fiat Chrysler, the last of the Detroit auto manufacturers to negotiate for 2019.