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DETROIT - In its second agreement with the domestic automakers, the UAW reached a tentative agreement with Ford Motor Co. today.
"This tentative agreement adds another 5,750 new jobs to communities across America where people have been struggling to recover from our nation's economic turmoil," said UAW President Bob King. "These new UAW jobs mean 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."
The UAW Ford proposed agreement also includes $16 billion of investment to produce new models and upgraded vehicles and components by 2015, of which, $6.3 billion will be invested directly into retooling and upgrading plants.
"Long-term job security for UAW members depends on quality, innovation and efficiency," said UAW Vice President Jimmy Settles, who directs the union's Ford Department. "UAW members at Ford are completely committed to top-quality and top-selling products, and this agreement ensures that the members will benefit now that the company is doing well.
"UAW members sacrificed when the company was struggling and now will share in Ford's prosperity," Settles added.
Ford has been an industry leader in quality, earning top awards in quality and dependability in the 2011 J.D. Power vehicle study.
"This agreement recognizes that Ford would not have turned the corner had it not been for the commitment and dedication of its workers," said Settles. "The agreement recognizes that the workers and the union have played an active role in making Ford products among the top sellers in the country.
"The path to long-term job security for UAW members includes making the highest-quality, best-value vehicles for consumers while negotiating the best contract for our members. To ensure that both sides benefit, the UAW and Ford negotiated a contract that helps the company keep their fixed costs and product prices competitive, while providing substantially increased profit-sharing to workers, so everyone benefits when the company does well," Settles added.
"Auto manufacturing jobs are some of the most important jobs to our nation's economic viability. Each auto manufacturing job creates or supports another 10 jobs in auto parts suppliers, businesses surrounding these plants and jobs supported by the tax base created by auto manufacturing. Together with the UAW and GM and Ford, we are helping create nearly 170,000 jobs for Americans," King said.
"With global markets in disarray and the U.S. economy teetering, the UAW entered into bargaining this year with the domestic automakers with the wind in our face," said King. "Against great odds, our members stood committed to securing decent contracts with long-term security for our members, creating jobs in communities hit hard by the economic recession, and producing quality products.
"The UAW Ford agreement meets these goals: creating jobs, bringing work back to the United States and helping strengthen our communities and our economy," King added.
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.
Details of the proposed agreement are being witheld until UAW members have had trhe opportunity to review it. The media will be notified when details are released.