Ford workers narrowly approved a new four-year contract, wrapping up five months of negotiations between the United Auto Workers union and Detroit automakers.
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About 55% of the 52,600 union workers at General Motors had voted in favor of the deal earlier this month.
The contract discussion between GM and the UAW had re-opened after workers in the skilled trades’ classifications rejected the contract.
“Based on how most the U.A.W.-G.M. membership concerns about shielding the core trades categorizations and seniority rights have now been fulfilled, the worldwide Executive Board took action to officially ratify the U.A.W.-G.M. national understanding”, the U.A.W. said in a statement.
“The General Motors Co. was notified on November 20 that the agreement has been ratified”, wrote UAW Vice President Cindy Estrada in a letter to union leadership late Friday.
Ford workers ratified a new four-year agreement by a narrow 51% margin. The previous pact for General Motors, Ford and Fiat Chrysler was to expire September 14 but was extended as the UAW focused on one company at a time to finalize agreements.
John Fleming, Ford’s executive vice president of global manufacturing and labor affairs, told Insider Louisville in an emailed statement shortly before midnight Friday that the company was pleased with the outcome.
But a few veteran Louisville workers said the contract does nothing for them, while others were concerned that the eight-year wage progression for second-tier workers was not fast enough.
The ratification of the deal with Ford was announced later last night. That stalled ratification, as the UAW investigated why the group representing about 8,500 workers – or about 16 percent of GM’s hourly workforce – voted against the deal.
The contract also phases out a two-tier pay stem that had prevailed at Ford since 2007.
Another impact of the contract centers on LAP and the opportunity for many subsidiary plants (often called ACH’ers) and temporary workers who transferred to Louisville from OH and MI after 2009 to return to their “original zone of hire”.
The Big Three have worked for many years to decrease the amount of categorizations of skilled trades workers. GM skilled trades workers aren’t eligible for a $60,000 early retirement incentive that GM will offer up to 4,000 eligible employees as part of a ratified contract.
Added UAW Ford Vice President Jimmy Settles, “There is no higher authority than the membership”.
The contract is likely to cost GM more money.
The same study showed that Fiat Chrysler’s per hour labor costs will rise to $56 from $47, by 2019.
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This fall’s round of contract talks has been hard for the union. “Ford Motor Co. doesn’t want a strike now with the way they’re selling vehicles”.
