November 16 (UPI) – United Auto Workers members ratified a new four-year contract with Ford Motor Co., the union announced.
The new agreement was approved by 56.3 percent of voting members in Ford, the UAW said in a news release Friday. The tire is hourly employed at Ford manufacturing facilities in Michigan, Ohio, Kentucky, Missouri, Illinois and New York.
A total of 55,000 members work for Ford, more than the other two American automakers, General Motors and Fiat Chrysler.
Ford will incur $ 700 million in additional expenses in the fourth quarter under the new agreement, mainly related to ratification bonuses, the company said in a news release.
"Every Ford employee and temporary employee will be at the peak of full-time status at the end of this four-year agreement," notes UAW President Rory Gamble, director of the UAW Ford Department. "This is a life-changing contract for many and provides a template for all future Ford UAW members to a full-time top-level status. There will be no more permanent temporary situations and no more permanent levels."
agreement, full-time workers will receive $ 9,000 ratification bonuses, two 3 percent annual raises, two 4 percent lump sums and retain health care costs. Ford will not increase pension obligations or payouts to retirees, but will include a special pension program that "will improve the workforce composition and lower labor costs," the company said.
Temporary employees will earn $ 3500 bonuses. Ford will have increased use of temporary staff, but it will be a guaranteed path to full-time permanent employment for them.
Ford will create or retain 8,500 U.S. jobs while investing more than $ 6 billion in manufacturing operations in the United States. In return, Ford will shut down a Michigan plant.
"I want to thank the Ford National Negotiating team and the many UAW staff and members who stood together and made a strong contract for both today's and future members," Gamble said. "Ford's commitment to job security and assembly in the United States is a model for American manufacturers."
Ford is "pleased" the company could reach a "deal quickly with UAW without a costly production shutdown."
"This deal helps Ford strengthen our competitiveness and protect well-paid production jobs," Gamble added.
The agreement was the one reached last month by General Motors after a 40-day strike. GM projects to pay $ 4 billion in adjusted profit before interest and taxes this year.
The union now has a contract with Fiat Chrysler, which announced last month that it plans to merge with Peugeot. A merged FCA-Peugeot would be the fourth largest car manufacturer in the world behind Volkswagen Group, Renault-Nissan and Toyota.