Ford auto workers have voted in favor of a new four-year contract.
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A tentative deal between GM and union workers reached in October was rejected by the company’s skilled trade workers.
Ford’s contract was the last of the Detroit automakers to win approval.
The union said on Friday that the contract at Ford passed with a vote of 51.4%, which covers more than 53,000 hourly workers in the US across 22 plants. At Ford, the only Detroit-area automaker not to go bankrupt in 2009, the 52,900 UAW members expected even more.
Bringing to a close a tumultuous negotiating season with American vehicle manufacturing companies, contracts were ratified by the United Automobile Workers with Ford Motor and General Motors.
A few Ford workers pointed to the outcome at FCA as evidence that voting “no” would produce a better deal for themselves as well. Specifically, skilled trades workers opposed section of the contract meant to reduce the amount of skilled classifications, particularly among mechanical crafts such as millwrights, pipefitters, machine fix people and tool makers who make up 16 percent of total hourly employees. The UAW and GM agreed to protect job classifications and seniority-related rights.
UAW president, Dennis Williams in his statement: “Our UAW members have ratified the national agreement after a long process and much debate”. 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.
The review of skilled trades workers concerns found they had issues pertaining to local contract agreements, reclassification of trades, numbers of apprentices, concern over outsourcing or loss of jobs and the absence of cost of living increases and buyouts.
A rejection can be overridden by the union by skilled trades workers, but it cannot shift contract elements that apply to any or all members. The new contract gives veteran workers their first raise in about a decade and phases out a two-tiered pay structure that paid those hired after 2007 less than more senior union members. A second proposal that set an eight-year path from hiring to top pay was overwhelmingly approved at Fiat Chrysler, which had the most second-tier workers.
While proposed raises will take effect Monday, the two-week extension delayed payment of $8,000 signing bonuses for 52,700 GM workers until after Thanksgiving and the Black Friday weekend.
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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. GM’s per hour labor are up US$5 and Ford’s rose US$3.
