Ford-UAW deal richest of the Big Three automakers

The tentative labor pact inbetween Ford Motor Co. and the UAW is the richest of Detroit’s Big Three, and industry analysts say it avoids the hangups that stalled ratification of deals at Fiat Chrysler Automobiles NV and General Motors Co.

The Dearborn automaker’s tentative deal approved by the Ford National Council Monday in Detroit is now in the palms of 52,900 hourly employees, who will vote locally beginning this week.

It includes higher bonuses, richer buyout offers and more promised investments than labor pacts inbetween the UAW and the other two Detroit automakers.

“I think they’re attempting to avoid the pitfalls that the other two have encountered,” said Kristin Dziczek, director of the Industry & Labor Group at the Center for Automotive Research. “They don’t want to have either case repeat.”

Fiat Chrysler workers overwhelmingly turned down a very first tentative agreement by sixty five percent; and GM skilled trades workers last week voted down their agreement with the Detroit-based automaker, delaying final ratification.

“The big key is that (Ford) made a significant adjustment to the skilled trades,” said Art Wheaton, a labor experienced at Cornell University. “It sounds like they’re attempting to do a lot to get this thing ratified without a lot of the brouhaha.”

Overall, Ford’s skilled trades workers are expected to receive almost $35,100 in fresh money over the four-year life of the deal — about $Two,500 more than typical production workers. That’s in addition to profit-sharing, which the union says was worth about $30,000 for a typical worker during the 2011-15 contract.

The union said negotiators also “resisted the company’s attempt to further consolidate skilled trades classifications.”

GM’s skilled trades workers are expected to have some classifications consolidated, pending the contract’s ratification. That’s part of the reason why skilled trades workers late last week voted against GM’s tentative deal, forcing the union this week to hold follow-up meetings to determine what to do next. UAW local presidents and shop chairs Tuesday are to wrap up two days of meetings with GM skilled trades workers, but the UAW has not yet set a meeting for its International Executive Board to determine its next course of activity, a union spokesman said Monday.

Hikes retroactive to Sept. 15

Ford’s deal includes a $Ten,000 total signing bonus: $8,500, plus a $1,500 advance in profit sharing. Improvised employees will receive $Two,000. That’s more than the $8,000 GM workers would receive and the $Three,000-$Four,000 FCA workers got.

And because contract negotiations have taken so long, Ford workers will receive their wage increases retroactive to Sept. 15.

The Ford pact also pledges $9 billion in U.S. plant investments, including $Four billion investments in assembly operations, that will create or retain 8,500 jobs. It promises no plant closings over the four years of the contract.

As part of its production plans, Ford said in the contract that the Taurus, Concentrate, C-Max and Fusion would proceed “through their product life cycle,” but not beyond that. Ford previously said it would end production of the Concentrate and C-Max in two thousand eighteen at its Michigan Assembly Plant in Wayne, and The Detroit News very first reported in August that the Ranger truck would be built there in 2018. The Taurus is made at Chicago Assembly, while the Fusion is made at Vapid Rock and in Mexico.

The contract “highlighter” document says only that Michigan Assembly will receive a fresh vehicle in 2018, and another no later than 2020.

In addition, the contract exposed that Ford will stop producing the Lincoln MKC at its Louisville Assembly Plant once its product life cycle is finish to make room to build more Escapes. It’s unclear where Ford intends to stir MKC production.

The moratorium on plant closures is a big win for the Rawsonville, Sterling Axle and Woodhaven Stamping facilities, which were given fresh life with a fresh pay structure and in-sourcing at Woodhaven. Second-tier employees, who make less than veteran workers, will make $16.25-$Nineteen.86 at those plants, according to the contract.

“The significant fresh investments will strengthen job security and job growth over the long-term,” UAW President Dennis Williams said in a statement. “We worked hard to secure an agreement that provides a clear path to traditional wages for all members and substantial raises for traditional members for the very first time in ten years. Our members will have the final word, and we look forward to the conversation in the days ahead.”

The Ford pact also includes $1,750 in extra annual bonuses and patterns wage increases for veteran workers after the deal ratified by FCA workers and the tentative agreement reached inbetween GM and the UAW.

First-tier workers will receive two, three percent base wage increases and two four percent lump sum bonuses over the course of the contract. Second-tier workers will have an eight-year grow-in period to reach top wages. Ford’s agreement also includes moving entry-level workers to traditional workers’ health care plans, similar to the GM pact.

Fresh hires would top out at $28 an hour, according to the contract.

Ford had a twenty percent cap on the number of second-tier workers its could employ. With harshly twenty nine percent of its workers at that level, Ford before negotiations moved about eight hundred second-tier workers to first-tier status. During negotiations, Ford added about three hundred more, bringing the total number of workers bumped up to top pay to about 1,100.

Select eligible skilled trades workers and all other hourly employees will be a part of targeted early retirement buyouts. The programs will provide gross lump-sum incentive payments of $70,000. Timing was not announced, citing it will be up to the automaker and union.

“This tentative agreement produces substantial wins for members. It’s a hard-earned victory for our members, their families and our union,” UAW Vice President Jimmy Lodges, said in a statement.

The deal does not switch Ford’s profit-sharing formula that pays hourly workers $1 for every $1 million in North America profits, but it liquidated the cap on the amount of company profits captured in the profit-sharing plan. Previously, workers would not have been paid on any profits above $12 billion.

Ford’s 124,000 retirees will receive $1,000 over the contract’s four years.

Like at FCA and GM, Ford workers will receive sixty four holidays over the course of the four-year pact, including the restoration of Easter Monday. Also following the pattern set at GM & FCA, Ford workers will have the day off on the actual Veteran’s Day holiday, not the long weekend normally reserved for the embark of hunting season.

Ultimately, analysts believe the Ford deal will be ratified.

“You can’t take any ratification for granted; no matter how much they get they’re always going to want more,” Wheaton said. “But I would think of the three, this one should be a little better off for ratification.”

■Chicago Assembly will receive $900 million investment:

Includes fresh Ford Explorer, fresh Police SUV Interceptor and a fresh vehicle to be named later, and Taurus will proceed through current lifecycle

■Dearborn Truck will receive $250 million in investment:

F-150 will proceed, fresh Ford Raptor will be added

■Flat Rock Assembly will receive $400 million investment:

Ford Mustang will proceed, adds fresh Lincoln Continental and Fusion will proceed through its lifecycle based on request

■Kansas City Assembly will receive $200 million in investment:

Ford F-150 and Transit proceed

■Kentucky Truck Assembly will receive $600 million in investment:

All-new Ford Super Duty truck and Ford Expedition and Lincoln Navigator proceed with a major investment, in-sourcing of some work

■Louisville Assembly will receive $700 million investment:

All-new Ford Escape and current Lincoln MKC “will balance out” or stir from the location, to permit capacity for Escape

■Michigan Assembly will receive $700 million in fresh investment:

Fresh vehicle to be added in 2018, with extra product planned no later than 2020; Ford Concentrate and C-Max will budge out

■Ohio Assembly to receive $250 million investment

Ford medium-duty truck proceed, with fresh product to be announced

Ford-UAW deal richest of the Big Three automakers

Ford-UAW deal richest of the Big Three automakers

The tentative labor pact inbetween Ford Motor Co. and the UAW is the richest of Detroit’s Big Three, and industry analysts say it avoids the hangups that stalled ratification of deals at Fiat Chrysler Automobiles NV and General Motors Co.

The Dearborn automaker’s tentative deal approved by the Ford National Council Monday in Detroit is now in the mitts of 52,900 hourly employees, who will vote locally beginning this week.

It includes higher bonuses, richer buyout offers and more promised investments than labor pacts inbetween the UAW and the other two Detroit automakers.

“I think they’re attempting to avoid the pitfalls that the other two have encountered,” said Kristin Dziczek, director of the Industry & Labor Group at the Center for Automotive Research. “They don’t want to have either case repeat.”

Fiat Chrysler workers overwhelmingly turned down a very first tentative agreement by sixty five percent; and GM skilled trades workers last week voted down their agreement with the Detroit-based automaker, delaying final ratification.

“The big key is that (Ford) made a significant adjustment to the skilled trades,” said Art Wheaton, a labor accomplished at Cornell University. “It sounds like they’re attempting to do a lot to get this thing ratified without a lot of the brouhaha.”

Overall, Ford’s skilled trades workers are expected to receive almost $35,100 in fresh money over the four-year life of the deal — about $Two,500 more than typical production workers. That’s in addition to profit-sharing, which the union says was worth about $30,000 for a typical worker during the 2011-15 contract.

The union said negotiators also “resisted the company’s attempt to further consolidate skilled trades classifications.”

GM’s skilled trades workers are expected to have some classifications consolidated, pending the contract’s ratification. That’s part of the reason why skilled trades workers late last week voted against GM’s tentative deal, forcing the union this week to hold follow-up meetings to determine what to do next. UAW local presidents and shop chairs Tuesday are to wrap up two days of meetings with GM skilled trades workers, but the UAW has not yet set a meeting for its International Executive Board to determine its next course of activity, a union spokesman said Monday.

Hikes retroactive to Sept. 15

Ford’s deal includes a $Ten,000 total signing bonus: $8,500, plus a $1,500 advance in profit sharing. Makeshift employees will receive $Two,000. That’s more than the $8,000 GM workers would receive and the $Three,000-$Four,000 FCA workers got.

And because contract negotiations have taken so long, Ford workers will receive their wage increases retroactive to Sept. 15.

The Ford pact also pledges $9 billion in U.S. plant investments, including $Four billion investments in assembly operations, that will create or retain 8,500 jobs. It promises no plant closings over the four years of the contract.

As part of its production plans, Ford said in the contract that the Taurus, Concentrate, C-Max and Fusion would proceed “through their product life cycle,” but not beyond that. Ford previously said it would end production of the Concentrate and C-Max in two thousand eighteen at its Michigan Assembly Plant in Wayne, and The Detroit News very first reported in August that the Ranger truck would be built there in 2018. The Taurus is made at Chicago Assembly, while the Fusion is made at Vapid Rock and in Mexico.

The contract “highlighter” document says only that Michigan Assembly will receive a fresh vehicle in 2018, and another no later than 2020.

In addition, the contract exposed that Ford will stop producing the Lincoln MKC at its Louisville Assembly Plant once its product life cycle is finish to make room to build more Escapes. It’s unclear where Ford intends to stir MKC production.

The moratorium on plant closures is a big win for the Rawsonville, Sterling Axle and Woodhaven Stamping facilities, which were given fresh life with a fresh pay structure and in-sourcing at Woodhaven. Second-tier employees, who make less than veteran workers, will make $16.25-$Nineteen.86 at those plants, according to the contract.

“The significant fresh investments will strengthen job security and job growth over the long-term,” UAW President Dennis Williams said in a statement. “We worked hard to secure an agreement that provides a clear path to traditional wages for all members and substantial raises for traditional members for the very first time in ten years. Our members will have the final word, and we look forward to the conversation in the days ahead.”

The Ford pact also includes $1,750 in extra annual bonuses and patterns wage increases for veteran workers after the deal ratified by FCA workers and the tentative agreement reached inbetween GM and the UAW.

First-tier workers will receive two, three percent base wage increases and two four percent lump sum bonuses over the course of the contract. Second-tier workers will have an eight-year grow-in period to reach top wages. Ford’s agreement also includes moving entry-level workers to traditional workers’ health care plans, similar to the GM pact.

Fresh hires would top out at $28 an hour, according to the contract.

Ford had a twenty percent cap on the number of second-tier workers its could employ. With harshly twenty nine percent of its workers at that level, Ford before negotiations moved about eight hundred second-tier workers to first-tier status. During negotiations, Ford added about three hundred more, bringing the total number of workers bumped up to top pay to about 1,100.

Select eligible skilled trades workers and all other hourly employees will be a part of targeted early retirement buyouts. The programs will provide gross lump-sum incentive payments of $70,000. Timing was not announced, citing it will be up to the automaker and union.

“This tentative agreement produces substantial wins for members. It’s a hard-earned victory for our members, their families and our union,” UAW Vice President Jimmy Lodges, said in a statement.

The deal does not switch Ford’s profit-sharing formula that pays hourly workers $1 for every $1 million in North America profits, but it eliminated the cap on the amount of company profits captured in the profit-sharing plan. Previously, workers would not have been paid on any profits above $12 billion.

Ford’s 124,000 retirees will receive $1,000 over the contract’s four years.

Like at FCA and GM, Ford workers will receive sixty four holidays over the course of the four-year pact, including the restoration of Easter Monday. Also following the pattern set at GM & FCA, Ford workers will have the day off on the actual Veteran’s Day holiday, not the long weekend normally reserved for the begin of hunting season.

Ultimately, analysts believe the Ford deal will be ratified.

“You can’t take any ratification for granted; no matter how much they get they’re always going to want more,” Wheaton said. “But I would think of the three, this one should be a little better off for ratification.”

■Chicago Assembly will receive $900 million investment:

Includes fresh Ford Explorer, fresh Police SUV Interceptor and a fresh vehicle to be named later, and Taurus will proceed through current lifecycle

■Dearborn Truck will receive $250 million in investment:

F-150 will proceed, fresh Ford Raptor will be added

■Flat Rock Assembly will receive $400 million investment:

Ford Mustang will proceed, adds fresh Lincoln Continental and Fusion will proceed through its lifecycle based on request

■Kansas City Assembly will receive $200 million in investment:

Ford F-150 and Transit proceed

■Kentucky Truck Assembly will receive $600 million in investment:

All-new Ford Super Duty truck and Ford Expedition and Lincoln Navigator proceed with a major investment, in-sourcing of some work

■Louisville Assembly will receive $700 million investment:

All-new Ford Escape and current Lincoln MKC “will balance out” or stir from the location, to permit capacity for Escape

■Michigan Assembly will receive $700 million in fresh investment:

Fresh vehicle to be added in 2018, with extra product planned no later than 2020; Ford Concentrate and C-Max will stir out

■Ohio Assembly to receive $250 million investment

Ford medium-duty truck proceed, with fresh product to be announced

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