$9 Billion in New U.S. Investments to Create or Secure 8,500 Jobs for UAW Members Under Tentative Agreement with Ford
Clear Path to Traditional Wages for Current Members; $8,500 Ratification Bonus
Tentative Agreement Approved Overwhelmingly by UAW National Ford Council,
Now Heads to Vote by UAW Ford Membership
DETROIT- New U.S. investments worth $9 Billion are expected to create or secure 8,500 jobs for UAW members under a new Tentative Agreement with Ford that was overwhelmingly approved by the local union leaders on the UAW National Ford Council Monday. The Tentative Agreement ensures that current UAW members will have a clear path to traditional wages and health care benefits remain unchanged.
The Tentative Agreement will now go before the UAW Ford members for a final vote.
“The significant new investments will strengthen job security and job growth over the long-term,” said UAW President Dennis Williams. “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 first time in 10 years. Our members will have the final word, and we look forward to the conversation in the days ahead.”
The details of the Tentative Agreement include the following gains for UAW-Ford members:
- $9 Billion in New U.S. Investments and Moratorium on Outsourcing: With commitments from Ford to fully utilize and invest in U.S. facilities, job security is strengthened and job growth promised. The investment is expected to result in 8,500 new or secured jobs.
- Traditional Members to Bring Home Over $30,000 More in Wages and Bonuses: Not including profit sharing, which was worth more than $30,000 over the last four years, production workers will bring home $31,013 over the course of this contract; skilled trades will bring home $33,598. These are the first general wage increases for traditional members in 10 years.
- $8,500 Ratification Bonuses Secured: As soon as the contract is signed, traditional and in-progression members will get an $8,500 up-front lump sum bonus and temporary employees with 90 days of employment will get a $2,000 bonus.
- Bigger Piece of Ford Profits with Improved Profit Sharing: The profit-sharing formula for UAW-Ford members — based on $1 per $1 million of Ford’s North American profits, already one of the best in the industry — has resulted in members taking home more than $30,000 over the past four years. This Tentative Agreement strengthens profit sharing by eliminating the cap on the amount of Ford profits subject to profit sharing, allowing UAW-Ford Members to take home an even greater share of the company’s success.
- Clear Path to Traditional Wages for In-Progression Members: Under the Tentative Agreement, in-progression workers have a clear path to traditional wages, significant wage increases, bonuses and traditional healthcare.
- Traditional Health Care for In-Progression Members, Improvements for Traditional Members: All in-progression members will have traditional health care coverage. All UAW-Ford members will continue to pay no premiums, even as American workers at large employers pay an average of $1,648 in premiums for single coverage and $5,388 in premiums for family coverage.
- 401(k) Contribution Rate Raised to 6.4% for In-Progression Members: In-progression members will get more retirement security in this agreement. Thanks to an increase in the 401(k) contribution rate to 6.4% and large wage increases, Ford will be putting significantly more money into in-progression members’ 401(k) retirement savings funds.
“This Tentative Agreement delivers substantial wins for members. It’s a hard-earned victory for our members, their families and our union,” said UAW Vice President Jimmy Settles.