The members of the United Auto Workers have announced that they have ratified a four-year contract with the automaker Ford Motor Co.
This new deal had been approved by as many as 56.3 % of the voting members from Ford. This was reported in a news release on Friday by the UAW. The covered employees are hourly employees in the manufacturing plants of Ford in Kentucky, Missouri, Ohio, New York and Illinois.
Combined, the members who are working for Ford are 55,000 in number. The number is more than the other two automakers from Detroit, Fiat Chrysler and General Motors.
Ford is going to incur an additional expense of $700 million in its fourth quarter as per this new agreement which is tied mainly to the ratification bonuses as per the company’s news release.
The acting president of UAW, Rory Gamble has said that each of the Ford employees and also the temporary employees are going to be at top-rate for full-time status come the end of the agreement. He further added that the contract is life-changing for a lot of the members and is going to prove as a template for every UAW member in future to a full-time top-rate status. There is going to be no situation of being permanent or being temporary in future.
As per the deal, the workers who are full-time are going to receive a ratification bonus of $9,000 along with two annual raises of 3 percent and also two lump sum payments of 4 percent. They are also going to retain the costs of healthcare. Ford is also going to include a special program for retiree that is going to improve the composition of workforce as per the company.
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