Ford expects 70% of its growth during the next 10 years to come from its Asia Pacific and Africa region - so any new jobs are a UAW victory.
The Ford UAW branch reached a tentative agreement with Ford Motor Company the organized labor group announced today.
The tentative agreement is based of Ford’s promise to add another 5,750 new jobs and invest what’s said to be $16 billion to produce new models and revised vehicles and components by 2015, of which, $6.3 billion will be invested directly into retooling plants. Ten years ago the there were more than 102,000 UAW jobs at Ford. Today there are 40,000.
As is the current management practice in the ailing U.S. economy, the jobs claim includes so called retained jobs, as well as some new ones. All of this is contingent upon contract approval by local union members, which seems likely.
“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” said UAW President Bob King in a statement. Last week, the UAW and General Motors Company announced the creation of 6,400 jobs at GM. The American auto industry is on its way back.”
Ford previously announced 7,000 jobs would be created or retained during the four-year contract period, and this included 700 white collar jobs. The majority of new jobs will be entry level, which means if the contract follows the GM pattern, new hires will start at $14.78 and hour, not the $28 or more an hour that experienced union workers earn. This will help decrease or at least hold the line on Ford Motor labor costs. Ford management was looking to improve its overall competitiveness in the U.S. Ford’s total average hourly cost per hour worked before the new deal was $58.12.
Jobs, investment and product guarantees in the tentative agreement include:
- Flat Rock, Mich., second source for the next generation Fusion and next-generation Mustang.
- Kansas City, Mo., in-source Transit Commercial Van from Europe.
- Louisville, Ky., new unnamed vehicle in addition to 2012 Escape.
- Wayne, Mich., in-source C-Max from Europe for hybrid and plug-in hybrid models.
- Avon Lake, Ohio, in-source medium truck and frame assembly from Mexico, along with in-source Motorhome Chassis.
The Ford UAW represents approximately 41,000 hourly and salary workers at 27 Ford assembly and manufacturing facilities in the United States, making Ford and Lincoln brand cars and light trucks. The UAW also represents workers at four Automotive Components Holdings Inc. (ACH) plants, leftover from the Visteon component parts spin-off and subsequent bankruptcy.
Details of the proposed agreement are being withheld until UAW members have had the opportunity to review it.
“We are pleased that, by working together with the UAW, we reached a deal that is fair to our employees and that improves Ford’s competitiveness in the U.S.,” said John Fleming, Ford’s executive vice president of Global Manufacturing and Labor Affairs.
The UAW reached a tentative agreement with GM on 16 September, which was subsequently ratified by about two-thirds of UAW members on 28 September. The UAW’s current contract with Chrysler Group LLC has been extended, and negotiations continue.
See also:
- S&P Raises General Motors to Highest Junk Grade – BB+
- Ford UAW is Next Labor Contract Fight. Strike Possible?
- UAW Reaches Agreement with GM. Members Vote This Week
