The United Auto Workers union said on Tuesday it had ratified new four-year contracts with Ford and Visteon, Reuters reported.
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The news agency said the contracts cover over 72,000 workers at Ford and more than 21,000 workers at Visteon, as well as more than 77,000 retirees and 24,000 surviving spouses.
The contracts follow the economic terms set by the UAW in its contract with DaimlerChrysler AG’s Chrysler operation, Reuters said, giving hourly workers a $US3,000 signing bonus, a performance bonus in the second year of the contract, a 2% raise in the third year, and a 3% raise in the fourth year.
The deals also pave the way for Ford to close two assembly plants and two parts plants in the United States, and gives Ford the option of closing or selling a third parts plant, Reuters added.
