Ford workers narrowly voted to approve their new four-year agreement after a nail-biting process that kept everyone guessing until the final ballots were cast and counted.
Advertisement
The UAW released results late Friday after key votes at three plants among 8,000 workers in Dearborn, Mich. That concluded the voting that was open to 53,000 workers since last weekend conducted at 22 plants.
Workers also will receive an annual $1,000 performance bonus and additional $500 quality bonus if targets are met. The company plans to invest $1.9 billion at a dozen USA facilities, creating or retaining 3,300 jobs.
The U.A.W. Ford vice president, Jimmy Settles, said in a statement: “there’s no higher power than the membership”. ( F ) that boost pay for workers.
“We will continue to work with our UAW partners to implement the agreement, and engage our employees in improving the business and building great vehicles for our customers”, she said. The margin of victory was a slim 1,100 votes of the 40,000 cast on the new contract. “Through a rational and democratic procedure U.A.W.-Ford members have produced occupation protection and powerful economical increases for their families and communities”. General Motors’ contract was approved earlier on Friday after extended negotiations with skilled-trades workers such as electricians who had initially rejected it.
GM and the two other Detroit automakers, Ford Motor Co F.N and Fiat Chrysler Automobiles FCHA.MI FCAU.N , have worked for years to lessen the number of classifications of skilled trades workers. The new contract covering 52-thousand employees calls for raises for all workers.
Ratification of the Ford deal came hours after the union ratified the General Motors Co. contract, which had been held up for a week because a majority of skilled trades members rejected it.
Before votes on Friday, 52 percent of union members had voted against the proposal. Veteran workers went nearly a decade without raises, while new hires started on “second tier” wages that were half what senior staff earned.
A few Ford workers pointed to the outcome at FCA as evidence that voting “no” would produce a better deal for themselves as well.
The union said if they had thought that another dollar had been on the table they would have received it the first time.
Ford’s current labor costs average $57 per hour and GM’s average $55 per hour, according to the study by labor analysts Kristin Dziczek of the Center of Automotive Research and Arthur Schwartz, a private consultant.
Advertisement
Announcing the ratification with GM, UAW said in a statement, “Following discussions with GM, the parties agreed to changes that protect core trades classifications and seniority rights”.
