Ford said in a press release Friday that the company “will cost $700 million in the fourth quarter in costs related to the new agreement, which is primarily related to the ratification bonus.” The agreement applies to UAW employees hourly at Ford`s production sites in Michigan, Ohio, Kentucky, Missouri, Illinois and New York. “We are pleased to have been able to quickly reach an agreement with the UAW without costly disruption to production,” Joe Hinrichs, president of Ford Automotive, said in a prepared statement. “This agreement helps Ford improve our competitiveness and protect high-paying manufacturing jobs. In collaboration with the UAW, we have made our business more flexible, while keeping labour costs in line with projected costs for labor inflation in manufacturing in the United States, while rewarding our employees for their significant contributions to the company. “Our national negotiators, elected by their local unions, have unanimously decided to recommend to the UAW-Ford National Council the proposed interim agreement,” UAW Vice President Rory Gamble said in a statement on Wednesday. “During the General Motors strike, our negotiating team worked hard to maintain productive negotiations with Ford… Out of respect for our members, we will refrain from commenting or publishing full details of the agreement until UAW Ford Council leaders meet to verify the details. Bernie Ricke, president of UAW Local 600 near the Red Industrial Complex, said its 14,000 active members are looking to the future, in investment, products and jobs. “The trial went well,” he said on Friday. “I think we did the right thing explaining the agreement to our members. I am proud of the work we have done. He added: “Out of respect for our members, we will refrain from commenting or publishing full details of the agreement until the leaders of the UAW-Ford Council meet to verify the details.” Details of the proposed Ford contract were not immediately available. A quick agreement suggests that Ford has only questioned some of the “models” defined by GM.
Dirksen of Ford said in a prepared statement: “Ford can confirm the UAW announcement that the UAW and Ford have reached a provisional agreement on a four-year contract. More details will be released at a later date. Ford Motor Co. and the United Auto Workers union said they tentatively agreed late Wednesday on a new four-year labor pact covering the automaker`s roughly 55,000 unionized workers. With a preliminary agreement proposal in hand, the union will make its Ford National Council, which includes all local UAW politicians, to verify and vote for submission to members. If they do, they will then be ratified in front of the 55,000 members of the UAW. Union workers have approved a four-year contract with Ford Motor that accepts pay increases and other conditions almost identical to the agreement with General Motors.