The US United Auto Workers union (UAW) said it would “proceed to pattern bargaining” with Fiat Chrysler Automobiles today (Monday 18 November) after its Ford members on Friday night ratified their 2019 Collective Bargaining Agreement by 56.3%.
“Every Ford employee and temporary employee will be at the top rate for full time status at the end of this four year agreement,” said acting UAW president Rory Gamble, also director of the UAW Ford department, in a statement.
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“This is a life changing contract for many and provides a template for all future Ford UAW members to a full time, top rate status. There will be no more permanent temporary situations and no more permanent tiers.”
Gamble was referring to the two-tier wage structures the UAW agreed with General Motors and the former Chrysler after the 2008/9 global financial crisis when both (but not Ford) restructured using the US Chapter 11 bankruptcy laws. The concession where new hires started on lower pay rates than longer serving employees was made to help the automakers’ recovery and its continued imposition was a sticking point during the recent union negotiations and strike at GM, selected as the lead automaker for the UAW’s latest multi-year labour contract talks.
The UAW said the ratified contract for Ford includes an economic package of a US$9,000 per full time member signing bonus, performance bonuses, two 3% annual raises and two 4% lump sum payments and holding the line on health care costs.
As in the past, the UAW negotiates a deal with its selected lead automaker of the Detroit Big Three, and contracts with the other two broadly follow the agreement reached with the lead company, this year GM.
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By GlobalData“I want to thank the Ford national negotiating team and the many UAW staff and members who stood together and crafted a strong contract for both today’s members and future members,” said Gamble.
“Ford’s commitment to job security and assembly in the United States is a model for American manufacturers.”
Ford has more UAW members than any other automaker in the US, the union said.
Ford had agreed it would invest at least $6bn in its US manufacturing operations, create or retain 8,500 US jobs while the UAW conceded closure of an engine plant in Michigan.
Industry observers in the US expect UAW discussions with FCA to be a little more contentious due to the planned merger with PSA group and amid a federal probe into union corruption that started with the Italian-American car maker.
US media reports said Gamble took over responsibilities of the union following UAW president Gary Jones taking a leave of absence on 3 November, days after being implicated in a federal corruption investigation into the union.
Jones, whose Michigan home was raided by federal agents in August, has not been charged by federal prosecutors.
Joe Hinrichs, Ford’s president of automotive, told cnbc.com the company was “pleased” that it was able to reach an “agreement quickly with the UAW without a costly disruption to production”.
“This deal helps Ford enhance our competitiveness and protect good-paying manufacturing jobs,” he said.
The union only ratified the deal with General Motors after a 40-day strike expected to cost the automaker up to $4bn in adjusted earnings before interest and taxes in 2019.
