Ford's UAW workers ratify new contract

Posted at 6:17 PM, Nov 16, 2019

The UAW says their members who work for Ford have voted to ratify their new contract.

The union says the 2019 Collective Bargaining Agreement was approved by 56.3%

According to the UAW, the new contract includes a $9,000 signing bonus, performance bonuses, two 3% annual raises and two 4% lump sum payments.

“Every Ford employee and temporary employee will be at the top-rate for full-time status at the end of this four-year agreement,” said Acting UAW President Rory Gamble, Director of the UAW Ford Department, in a news release. “This is a life changing contract for many and provides a template for all future Ford UAW members to a full-time, top-rate status. There will be no more permanent temporary situations and no more permanent tiers.”

“I want to thank the Ford National Negotiating team and the many UAW staff and members who stood together and crafted a strong contract for both today’s members and future members,” said Gamble. “Ford’s commitment to job security and assembly in the United States is a model for American manufacturers.”

“We are pleased that we were able to reach an agreement quickly with the UAW without a costly disruption to production,” said Joe Hinrichs, Ford’s president, Automotive in a news release. “This deal helps Ford enhance our competitiveness and protect good-paying manufacturing jobs. Working with the UAW, we have added flexibility to our operations while keeping labor costs in line with projected U.S. manufacturing labor inflation costs and still rewarded our workers for their important contributions to the company.”

Ford also released the following contract details:

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

The UAW says they will begin negotiations with Fiat Chrysler on Monday.

FCA released the following statement about the upcoming negotiations:

FCA welcomes the opportunity to move our discussions with the UAW forward in order to reach an agreement that will allow us to continue investing in our future and create opportunities for our employees, their families and the communities where we live and work.