Ford and the United Auto Workers Union have reached a tentative settlement covering the automaker’s U.S. hourly workers. The two sides are expected to hail the development as a critical step in maintaining the competitiveness of the domestic auto industry – and bringing jobs back.
The agreement comes more than two weeks after the UAW was able to hammer out an agreement with General Motors and is expected to follow the pattern of the GM agreement. That would mean substantial bonuses and a small raise for tier-two workers currently earning about half as much as veterans on the line.
But Ford is also expected to benefit from the agreement, as did GM, through terms designed to improve productivity and offset any added costs. That is expected to result in the addition of new union jobs, while also helping Ford keep open a plant in the Detroit suburbs many had expected might close.
Ford officials will outline their view of the agreement during a news conference this morning, UAW leaders following several hours later. TheDetroitBureau.com will have coverage following those events.