Ford CEO Mark Fields noted the automaker paid $600 million for labor peace with the UAW.

Ford Motor Co. is setting aside $600 million in the fourth quarter to cover the cost of its newly ratified labor agreement with the United Auto Workers.

The $600 million will be used to cover the cost of the $8,500 ratification bonus due each of the company’s 53,000 hourly workers under the new contract, Ford executives said during a conference call.

Labor News!

It also handles back pay due employees to cover the incremental wage increases due under the terms of agreement. The retroactive pay goes back to the Sept. 14 expiration of Ford’s old pact with the UAW under the terms of the agreement. (more…)