Ford Motor Co. and the United Auto Workers reached on Friday a tentative agreement for a new four-year labor contract according to both the carmaker and the union.
The contract covers 52,700 members from Ford UAW and the proposed deal is most likely to be approved today and then get a ratification vote form Ford’s UAW members.
John Fleming, manufacturing chief at Ford, stated that “Working with our UAW partners, we have reached a tentative agreement for the next four years for our employees and our business. The agreement, if ratified, will help lead the Ford Motor Company, our employees and our communities into the future.”
Meanwhile, the workers from General Motors Co. are in the final steps of voting on their new four-year contract, which is expected to be approved after bigger plant results turned to be in favor of the deal. Ford’s new deal is similar in terms of structure with the GM pact and the Fiat Chrysler-UAW contract that was ratified two weeks ago, both asking for the two-tiered wage system to stop as it paid the more recently employed workers less than the veteran UAW workers.
Dennis Williams, President of UAW, spoke about the GM and Fiat Chrysler contracts, naming them “very rich agreements.” Williams added that the proposed Ford contract “will solidify job security,” but did not offer any other specifics about production commitments from the company. UAW Vice President, Jimmy Settles, also stated that “This agreement is significant for our members in that it creates a clear path for economic advancement for active members and rewards veteran employees for their sacrifices in recent years. It is one of the richest agreements in the history of UAW-Ford.”
The GM workers were promised a $8,000 bonus after the contract ratification, while Fiat Chrysler workers received $3,000 or $4,000 depending on their seniority with the company.