DETROIT (AP) – Members of the United Auto Workers union at Ford Motor Co voted on Friday to approve a new contract with the company.
The union said in a statement that 56.3 per cent of workers who voted were in favour of the deal. The four-year agreement reached on October 31 gives workers a mix of pay raises and lump-sum payments as well as a USD9,000 ratification bonus. The company also promises USD6 billion in United States (US) factory investments.
Acting Union President Rory Gamble called the agreement “life changing” for workers and said it eliminates perpetual temporary employees and different wage tiers for workers doing the same jobs. Ford said the deal increases its competitiveness, keeping its cost structure similar to its US-based competitors. It also secures 8,500 US hourly jobs.
The contract will cost Ford USD700 million in the fourth quarter, mainly to pay ratification bonuses to its 55,000 hourly workers. Union spokesman Brian Rothenberg said on Friday night he did not have vote totals.