UAW-Ford Collective Bargaining Agreement Ratified

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The new collective bargaining agreement ratified tonight by United Automobile, Aerospace and Agricultural Implement Workers of America represented employees in the United States increases Ford Motor Company’s manufacturing competitiveness and provides USD 6 billion in US investments, creating and securing 8,500 hourly jobs in America.

The terms of the new agreement provide Ford with opportunities to improve its manufacturing and operational fitness, including:

Increased use of temporary employees

Closing one engine plant, improving powertrain manufacturing capacity utilization, while offering all workers jobs at a nearby plant

Special retirement program that will improve workforce composition, lowering labor cost

No increase to pension obligations or payments to retirees

Ford’s hourly employees also receive a number of benefits, including:

$9,000 ratification bonus for full-time permanent employees and $3,500 for temporary employees

Guaranteed path to permanent full-time employment for temporary employees

Wage increases, bonuses and continued profit sharing, allowing employees to share in the company’s success

Opportunity for current in-progression and temporary employees to achieve top wage rate by end of agreement

This agreement keeps Ford’s labor cost structure similar to its domestic competitors.

Ford will incur $700 million in expense in its fourth quarter tied to the new agreement, primarily associated with the ratification bonus.

Source : Strategic Research Institute, SteelGuru