The members of the UAW have ratified a new four-year deal with Ford Motor and the terms of the agreement are similar to those reached with General Motors.
The union announced on Friday night that it has successfully reached the four-year deal with Ford. The contract agreement was backed by 56% of Ford members who voted.
The deal demands that Ford makes over $6 billion in investments in its U.S. manufacturing operations. It will create or retain 8500 jobs in the U.S. The deal also allows Ford to shut down an engine plant in Michigan. The automaker will pay ratification bonuses to full-time workers and temporary employees. The former will get $9,000 and the later $3,500.
The deal has been described by the acting UAW President Rory Gamble as “a life-changing contract for many” of Ford’s 55,000 union workers. Gamble who became acting president after Gary Jones took a leave of absence on Nov. 3 applauded Ford for its commitment to job security and assembly in the U.S. It “is a model for American manufacturers,” he said in a release.
Speaking on the new deal, Ford’s president of Automotive, Joe Hinrichs, said that the company is pleased it could an agreement within such a short time with the UAW. “This deal helps Ford boost our competitiveness and secure good-paying manufacturing jobs,” he added.
The UAW and Ford agreed that workers will receive 4% lump-sum payments in the first and third years of the contract and a 3% wage increase in the second and fourth years of the contract. The contribution of workers toward health coverage remains at about 3% of the total cost.
The terms of the agreement are comparable to those that the union reached with General Motors last month after a 40-day strike that disrupted the company’s operations in North America. The nationwide strike which is the longest against G.M in 49 years will reduce the company’s 2019 operating profit by about $3 billion. UAW is scheduled to start negotiations with Fiat Chrysler, another Detroit automaker. It will be the union’s last negotiation for 2019.