The United Auto Workers union and General Motors finally have a contract through September 2019. “Through a fair and democratic process, UAW-Ford members have delivered job security and strong economic gains for their families and communities”, said UAW Vice President Jimmy Settles, the union’s top negotiator with Ford, in a statement.
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The Dearborn Truck Plant, with more than 4,300 workers, was 74% in favor which was thought to be enough to carry all of Local 600 to passing the vote and in turn ensure the entire contract is ratified, said Nick Kottalis, chairman of Local 600, shortly before the final results were released.
“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”.
The UAW-Ford deal comes after a resurgence in auto sales and profits.
“We are pleased”, John Fleming, Ford’s executive vice president for global manufacturing and labor affairs, said in a statement. 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. It was not immediately clear if the union and GM have changed any skilled trades language. Almost 51% production members, 52% skilled trades, and 92% of salaried workers were in favor of the pact.
The Big Three have worked for many years to decrease the amount of categorizations of skilled trades workers. Leading up to negotiations this year, UAW President Dennis Williams repeatedly promised workers that this round of talks represented “our time” to recover what had been given up. Veteran workers will receive two 3 percent wage increases in years one and three of the contract, and two 4 percent lump sum payments in years two and four. ( F ) that boost pay for workers. The contract raises wages for all workers, provides an $8,500 signing bonus and promises $9 billion in investments at Ford’s US plants over four years.
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.
The economic provisions in the GM contract are virtually identical to the union’s contract with Ford.
GM declined to comment on the external labor cost estimates.
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The narrow approval avoids a potentially contentious and embarrassing situation for the UAW’s leadership, which also had trouble getting deals ratified with Fiat Chrysler and General Motors.
