Ford has reached a preliminary agreement with the United Auto Workers union on a new employment contract for its U.S. employees, likely avoiding a strike that cost rival General Motors billions of dollars. Fiat Chrysler and PSA Group are expected to announce a merger deal on Thursday that could complicate contract negotiations between FCA US LLC. Details of the draft Ford contract were not immediately available. A quick deal suggests that Ford has questioned some of the "model" elements defined by GM. The UAW said in a statement today that details of the new agreement will be formally made available to union members at declaration and ratification meetings with local UAW Ford unions. No timetable has been set for ratification. The UAW turned its attention on Oct. 25 to negotiations with Ford, after ending a 40-day strike against GM, which the company estimates will cut profit by about $US 2.9 billion this year.
The Ford deal, reached after three days of economic talks, is expected to follow the fundamental model of the GM contract, which included lump sum payments and annual wage increases that will bring production wages to $32.32 an hour through 2023. Ford confirmed that the deal for a new four-year contract had been reached, but said details would be revealed later. "Out of respect for our members, we will refrain from commenting or publishing the full details of the agreement until UAW Ford board executives meet and verify the details." Ford Motor Co. and the United Auto Workers union said it had reached a preliminary agreement late Wednesday on a new four-year employment contract covering the automaker`s roughly 55,000 unionized employees. "Our national negotiators, elected by their local unions, voted unanimously to recommend the proposed interim agreement to the UAW-Ford National Council," Gamble said in a prepared statement. "Our bargaining team worked hard during the General Motors strike to maintain productive negotiations with Ford." The deal reached around 3:20 a.m. .m after 44 hours of negotiations is expected to be ratified by ford`s roughly 60,000 UAW members. If approved, it would lead to the conclusion of historic negotiations that resulted in agreements to make U.S.-based automakers profitable.
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