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UAW and Ford create jobs for America

10/04/11

DETROIT -- UAW leaders from around the country gathered in Detroit today to hear details of a tentative agreement between the UAW and Ford Motor Co.  The agreement, the second reached between the UAW and the domestic automakers, builds on the UAW-GM contract, ratified by workers last week. 

"As the nation's economy remains stalled and uncertain, and its employment rate stagnates, we were able to win an agreement with Ford that will bring auto manufacturing jobs back to the United States from China, Mexico and Japan," said UAW President Bob King. 

"This agreement adds 5,750 new UAW jobs which means more than 12,000 new jobs in total with jobs previously announced by Ford. Many of these jobs will be added by the end of 2012, and all will be added during the term of the new contract. Last week, the UAW and General Motors Co. announced the creation of 6,400 jobs at GM. The American auto industry is on its way back," King added. 

The tentative agreement includes $16 billion to produce new and upgraded vehicles and components by 2015, of which, $6.3 billion will be invested directly into retooling and upgrading plants.  

Jobs, investment and product guarantees in the tentative agreement include: 

  • Flat Rock, Mich., second source for the next generation Fusion and next-generation Mustang.
  • Kansas City, Mo., in-source Transit Commercial Van from Europe.
  • Louisville, Ky., new unnamed vehicle in addition to 2012 Escape.
  • Wayne, Mich., in-source C-Max from Europe in both hybrid and plug-in hybrid models.
  • Avon Lake, Ohio, in-source medium truck and frame assembly from Mexico, along with in-source Motorhome Chassis. 

In addition to the assembly plants receiving new and in-sourced vehicles, three other assembly plants will receive substantial investment. Ten engine and transmission plants will receive investment, along with three stamping plants. A complete list of plant investment can be found by downloading the contract summary

"UAW members sacrificed when the company was struggling, and this agreement ensures that our members will now share in Ford's prosperity. While new jobs, investment and new products for our plants are the most important components of a secure future for our members, we were also able to make important gains in both income and benefits in this tentative agreement," said UAW Vice President Jimmy Settles, who directs the union's Ford Department.                            

"In terms of economic security, we won a $6,000 Settlement Bonus for workers and $7,000 in Inflation Protection and Competitive lump-sum payments over the term of the agreement," said Settles.

"Another important gain is the strong improvements we made in transparency and simplicity in the profit sharing plan.  Workers will receive their first payment averaging $3,700 this year.  We were also able to increase Entry-Level wages to $19.28 over the term of the agreement," Settles added. 

The UAW Ford Council voted today to recommend the tentative four-year agreement to local unions who will be conducting ratification votes at meetings throughout the country this week.  Details of the tentative agreement can be found here.

The UAW reached a tentative agreement with GM on Sept. 16. The agreement was ratified by UAW members with a 2:1 ratio on Sept. 28. The UAW's current contract with Chrysler Group LLC has been extended, and negotiations continue.

The UAW represents approximately 41,000 hourly and salary workers at 27 Ford assembly and manufacturing facilities in the United States, making vehicles with the Ford and Lincoln brands.  The UAW also represents workers at four Automotive Components Holdings Inc. (ACH) plants.