UAW Wins Second Round – Announces Deal with Ford

October 05 00:00 2011

New York, October 5 ( – After striking a deal with General Motors (NYSE: GM) last month, the United Auto Workers (UAW) union moved ahead to announce a tentative agreement with Ford Tuesday. A four-year contract, that is an almost carbon copy of the deal with General Motors, has been announced. UAW is now focusing its attention on Chrysler and hopes to complete its epic contract deals with the largest automakers of America.

Bob King, president of UAW union, said that the deal with Chrysler is likely to be struck soon. While announcing the details of the Ford deal, he said at a news conference Tuesday, “We want to go in and finish the job at Chrysler very quickly.”

The agreement envisages that the company will create 5,750 entry-level jobs in the U.S. over the four-year period of the contract. These jobs will be over and above the 6,250 positions that Ford had promised to add in the next two years. Ford has also agreed to raise the wages of entry-level employees from about $15 an hour to $19 an hour by the end of the contract.

Veteran autoworkers with at least one of experience will get a $6,000 bonus for signing the new contract as well as annual $1,500 payments beginning next year and through 2015. However, they will not get any increase in base wages. The bonuses are higher than what GM had agreed to. Over the next two weeks, about 41,000 workers at Ford will vote whether to approve the agreement.