(F) Ford Motor Workers Ratify UAW Contract

Workers at Ford Motor Co. (F) have ratified the proposed 4-year agreement with United Auto Workers (UAW). The deal covers 41,000 Ford workers in the U.S.

Under the ratified deal, most of the Ford workers would not be entitled to annual pay raises. However, they will receive profit-sharing checks, inflation adjustment payments and other bonuses worth totaling at least $16,700 until 2015.

Ford also promised to invest $4.8 billion in U.S. plants creating 5,750 jobs. Thus, the automaker would add 12,000 jobs in the U.S. until 2015 after adding 6,250 jobs already announced by the company.

Ford workers resented the deal soon after it was proposed as it did not have annual pay raises, cost-of-living increase adjustments and additional holidays. They were also furious about the CEO, Alan Mulally’s $26.5 million pay package for 2010. However, the ratification came on the back of a promise to add a significant number of jobs given the dismal job market situation in the U.S.

At the end of September, workers at General Motors Co. (GM) already ratified the UAW deal. Under the agreement, most of the workers would not get annual pay raises, but signing bonuses totaling $5,000, profit-sharing checks and other payments amounting to at least $11,500 during the tenure of the deal.

The UAW is now waiting for the workers at Chrysler to ratify the 4-year deal. The tentative agreement between UAW and Chrylser includes a $3,500 signing bonus, which will be paid in two installments: $1,750 on signing and $1,750 once Chrysler achieves financial stability. The deal covers 23,000 factory workers and 3,000 salaried workers.

In conclusion, UAW’s agreements with the Detroit automakers have settled the pay for 112,000 workers. They would also add 20,000 jobs by 2015.

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