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UAW is looking at Ford now that the GM deal is done



General Motors' four-year deal will now be used as a template in negotiations with offending rival Ford Motor, the federation's choice for the next round of negotiations, followed by Fiat Chrysler.

"We can confirm that UAW today notified Ford that it plans to negotiate with us next time," Ford said in a statement. "As the United States # 1

vehicle manufacturer and largest employer for UAW-represented autoworkers, we look forward to reaching a fair deal that helps Ford strengthen its competitiveness and preserve and protect well-paid production jobs."

A contentious 40-day strike that crippled GM's US production was terminated Friday when workers approved a new contract with the company.

Ticker Security Last Change Change%
GM GENERAL MOTORS COMPANY 36.74 +0.92 + 2.57%
F FORD MOTOR COMPANY 8.72 +0.12 + 1.40%
FCAU FIAT CHRYSLER AUTOMOBILES NV 13.13 -0.04 -0.30%

-0.30%

GM workers voted 57.2 percent for the pact, giving it a vote of 23,389 to 17,501, the union said in a statement.

Many voted against the agreement because it still has several different pay scales for workers doing the same jobs.

Temporary workers can get permanent jobs after two or three years depending on the start date, but they start at the bottom of a pay scale, so people who do the same work may end up with different pay rates.

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The agreement also includes a mix of pay increases and one-time payments and a $ 11,000 signing bonus. But it does allow GM to shut down three US factories, a point for many of the 42.8 percent of workers who voted no.

The new contract is expected to add around $ 350 million in annual labor costs by the end of the contract, according to a note from Barclays analyst Brian Johnson reported by the Wall Street Journal.

That kind of labor inflation can be tougher for Ford and Fiat Chrysler to absorb.

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Although GM dealers had stocked vehicles before the strike, and many still have decent supplies, analysts say GM will not be able to make up for lost production. Had the strike been shorter, GM could have increased the speed of the assembly line and worked the plants overtime to collect and replenish the stock.

But many of the facilities that make popular SUVs and pickup machines were already working around the clock to keep up with demand before the strike began.

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Also, companies that supply parts to the factories and stopped production during the strike will need time to start over, even though GM has some parts in stock.

FOX Business & Evie Fordham, Thomas Barrabi and the Associated Press contributed to this article.


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