Ford Reaches Tentative Labor Agreement with UAW

Ford and the United Auto Workers union have reached a tentative labor agreement covering approximately 41,000 Ford employees in the U.S. The new four-year agreement must still be ratified by UAW members.

The deal will add 12,000 hourly jobs at American factories between now and 2015. That includes bringing jobs back to the U.S. from China, Japan, and Mexico. Ford also says that under the new agreement it will invest $16 billion in the U.S. to engineer and build more products here. That figure includes $6.2 billion in investments for assembly plants.

Ford had previously announced plans to create 7000 jobs in the U.S., and the new agreement adds 5750 more positions.

The Detroit News adds that the Ford-UAW deal is expected to prevent layoffs at a factory in Flat Rock, Michigan. Production of the Mazda 6 at Flat Rock will soon be moved to Japan. However, the News reports that some models of the Lincoln MKZ and Ford Fusion will be built at Flat Rock, preventing layoffs of Ford employees there.

As was the case in the agreement between General Motors and the UAW, the News says Ford employees will probably receive an expanded profit-sharing program and a “generous” signing bonus under the new labor deal.

Expect further details (and, potentially, product plans) to leak as the contract inches closer to ratification.

Sources: Ford, The Detroit News

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2012 Ford Focus

2012 Ford Focus

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