Ford/UAW Agree to Terms on New Contract

Ford Motor Company CEO Alan Mulally chats with television host Mike Rowe during the unveiling of the new Ford Explorer.

Ford Motor Company CEO Alan Mulally chats with television host Mike Rowe during the unveiling of the new Ford Explorer. (pic by zimbio.com)

After two weeks of bargaining, it appears that Ford Motor Company and the United Auto Workers (UAW) have come to an agreement on terms for a new labor contract. The main points of focus center around new jobs, significant investments in U.S. factories, and a number of other benefits for workers.

When we originally reported at the beginning of negotiations, Ford had promised 10,000 new jobs in the U.S. That figure has swelled to 12,000. The automaker has pledged to pump $16 billion of investments into new models and upgraded automobiles by 2015. $6.3 billion of that will be invested directly into retooling and plant upgrades in the United States.

Ford is repeating the bonus concept employed by General Motors in their agreement with the UAW – bonuses for every worker if the contract is ratified. Every employee that has been with Ford for at least a year will receive a check for $6,000 if voters approve the package. Those who have been with Ford for less than a year will get $5,000.

Workers will continue to reap benefits, including a $1,500 annual lump sum payment described as “inflation protection” in 2012, 2013, 2014 and 2015. Profit sharing bonuses have been upgraded, with an average bonus for 2011 expected to ring in at $3,700. Workers are guaranteed at least $16,752 in bonuses over the life of the agreement.

Pay levels will improve for entry level workers, rising to $19.28 an hour by the time this contract expires. And for those who are ready to retire and plan to do so by March 31, 2012, production employees will get a $50,000 bonus and skilled trades workers will get a $100,000 bonus.

Of the agreement, the UAW told its members that “we employed new strategies and tactics in these difficult economic times” and that they had won “major improvements we all can be proud of.”

Workers have 10 days to ratify the agreement, which we expect to happen. The UAW will now move on to again negotiating with Chrysler as they did once the General Motors agreement was secured. However, talks with Chrysler broke down and the union moved to get the pact with Ford completed first.


About Cecil Helton

Cecil Helton Cecil Helton is a U.S.-based writer and editor with passions for cars, motorcycles, boats, technology and social media. Much of his professional life since 1996 has been web-centric, and he’s written and developed content on a variety of subjects. His work in the houseboat industry received wide acclaim, such as winning the 1999 Cisco Systems Growing with Technology award and being named one of five finalists in the manufacturing sector of the 2000 Computerworld-Smithsonian Awards. As an Air Force brat, he spent much of his childhood in a two-year cycle of moving to a new place, making new friends, establishing a life, and then moving again. Destinations included: Kentucky, Illinois, Texas, the Greek isle of Crete, California and Ohio. Today you’ll find Cecil coping with his 15 year old son’s decision to pursue a motorcycle license at the same time he gets his driver’s license, being active across the web on multiple social media sites, and of course, writing articles and creating content on automotive and car insurance related topics right here at CarInsurance.org.


Facebook Comments