May 6, 2024

Ford Reaches Contract Deal With U.A.W.

Ford said the numbers include 6,250 jobs and $2.4 billion in investment that it had previously announced. The U.A.W. planned to provide more details at a news conference scheduled for later Tuesday.

“We really believe that it’s fair to our employees and recognizes the contribution that they’ve made to the success of Ford Motor Company,” John Fleming, Ford’s executive vice president of global manufacturing and labor affairs, told reporters at Ford’s headquarters.

Mr. Fleming declined to elaborate on how the deal affects Ford’s labor costs. He said nearly all of the new jobs will pay entry-level wages, which are currently about half as much as veteran workers earn. He said the entry-level pay scale would increase to be roughly on par with General Motors, which gave entry-level workers an hourly raise of $2 to $3 in a deal ratified last week, but he declined to give specific figures.

Ford said the deal brings work to the United States from Mexico, China and Japan. Including design work, engineering and other expenses, Ford said its total investment in the United States through 2015 would be $16 billion.

Bob King, the U.A.W.’s president, said most of the new jobs will be added by the end of 2012.

“This agreement adds another 5,750 new jobs to communities across America where people have been struggling to recover from our nation’s economic turmoil,” Mr. King said in a statement. “The American auto industry is on its way back.”

Negotiators remained at the bargaining table overnight Monday until reaching the agreement early Tuesday.

The U.A.W. had already called union officials from Ford plants across the country to meet Tuesday in Detroit in anticipation of a deal, even though normally it does not call such a meeting until a settlement has been reached. After those officials review the agreement, the union will present it to rank-and-file members for ratification.

The union’s next task will be reaching an agreement with Chrysler. Talks with that company have been ongoing but union leaders chose to focus on Ford first when talks with Chrysler bogged down. The 2007 contract with Chrysler has been extended through Oct. 19.

Analysts expected the union’s contract with Ford deal to look similar to the G.M. deal, but with some terms made more favorable to reflect the fact that Ford was the only Detroit automaker that did not go through bankruptcy protection in 2009.

G.M.’s deal gives workers a $5,000 signing bonus and $1,000 in each of the other three years. Ford workers — who, unlike their counterparts at G.M. and Chrysler, did not have to give up their right to strike if negotiations broke down — have been vocal about their desire for larger bonuses.

The G.M. deal also calls for creating or retaining 6,400 jobs in the United States, moving some work to American plants from Mexico and raising pay for entry-level workers. G.M. workers earning full wages did not receive a pay raise.

Bill Vlasic contributed reporting.

Article source: http://feeds.nytimes.com/click.phdo?i=ff0e22a380278ff62cda7cc06489664a