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United Auto Workers Ratify Four-year Contract With Ford

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United Auto Workers union members for Ford Motor Co. ratified a four-year contract.

Ford, in its statement, noted that the new agreement includes $6 billion in investment in its U.S. manufacturing facilities and creates or secures 8,500 U.S. hourly jobs during the four-year contract.

The 2019 Collective Bargaining Agreement was approved by 56.3 percent of the vote.

The ratified contract includes an economic package of a $9,000 per full-time member signing bonus, performance bonuses, two 3% annual raises, and two 4% lump sum payments and holding the line on health care costs. Hourly employees will receive pay increases, bonuses, profit sharing and other benefits.

Ford will take $700 million in expense in its fourth quarter related to the new agreement, primarily associated with the ratification bonus.

Acting UAW President Rory Gamble, who is Director of the UAW Ford Department, said, "Every Ford employee and temporary employee will be at the top-rate for full-time status at the end of this four-year agreement. This is a life-changing contract for many and provides a template for all future Ford UAW members to a full-time, top-rate status."

Gamble added that there will not be any more permanent temporary situations and permanent tiers.

In late October, Ford and UAW union had reached a proposed tentative agreement on the four-year contract without a strike.

The UAW now said it will proceed to pattern bargaining with Fiat Chrysler on Monday.

Ford has more UAW members than any other automaker in the U.S. As per reports, around 55,000 workers are covered by the agreement.

In October, the UAW members at General Motors had ended a six-week strike against the automaker after union members approved a four-year contract, ending the longest automotive strike in 50 years.

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