UAW members ratify Ford contract

United Auto Workers Ford Motor Co. members ratified the 2019 Collective Bargaining Agreement by 56.3 percent, the UAW announced this evening.

“Every Ford employee and temporary employee will be at the top-rate for full-time status at the end of this four-year agreement,” said Acting UAW President Rory Gamble, who is Director of the UAW Ford Department. “This is a life changing contract for many and provides a template for all future Ford UAW members to a full-time, top-rate status. There will be no more permanent temporary situations and no more permanent tiers.”

The ratified contract includes an economic package of a $9,000 per full-time member signing bonus, performance bonuses, two 3% annual raises and two 4% lump sum payments and holding the line on health care costs.

“I want to thank the Ford National Negotiating team and the many UAW staff and members who stood together and crafted a strong contract for both today’s members and future members,” said Gamble. “Ford’s commitment to job security and assembly in the United States is a model for American manufacturers.” Ford Motor Company has more UAW members than any other automaker in the U.S.

The UAW will proceed to pattern bargaining with FCA on Monday.

The new Ford UAW agreement includes $6 billion in investment in Ford’s U.S. manufacturing facilities and creates or secures 8,500 U.S. hourly jobs during the four-year contract 

Other highlights according to a release include:

The agreement improves Ford’s powertrain capacity utilization, while maintaining the company’s best-in-class assembly plant capacity utilization in North America

Hourly employees receive pay increases, bonuses, profit sharing and other benefits

U.S. labor cost increase consistent with projected U.S. manufacturing labor cost inflation; cost structure similar to domestic competitors

“We are pleased that we were able to reach an agreement quickly with the UAW without a costly disruption to production,” said Joe Hinrichs, Ford’s president, Automotive. “This deal helps Ford enhance our competitiveness and protect good-paying manufacturing jobs. Working with the UAW, we have added flexibility to our operations while keeping labor costs in line with projected U.S. manufacturing labor inflation costs and still rewarded our workers for their important contributions to the company.” 

A release said that terms of the new agreement provide Ford with opportunities to improve its manufacturing and operational fitness, including: 

  • Increased use of temporary employees
  • Closing one engine plant, improving powertrain manufacturing capacity utilization, while offering all workers jobs at a nearby plant
  •  Special retirement program that will improve workforce composition, lowering labor cost
  • No increase to pension obligations or payments to retirees Ford’s hourly employees also receive a number of benefits, including: $9,000 ratification bonus for full-time permanent employees and $3,500 for temporary employees
  • Guaranteed path to permanent full-time employment for temporary employees
  • Wage increases, bonuses and continued profit sharing, allowing employees to share in the company’s success
  • Opportunity for current in-progression and temporary employees to achieve top wage rate by end of agreement

This agreement keeps Ford’s labor cost structure similar to its domestic competitors