- Yemen: Airstrike targets al Qaeda training camps
- Easter worshippers shocked as car rams church, injuring 21
- NYT’s David Brooks: Obama has ‘manhood problem’ in Middle East
- Ted Cruz thanks Obama for denying visas to terrorists
- Survivors recall chaos, fear in Everest avalanche
- General Mills apologizes for ‘right to sue’ confusion, reverses policy
- Dealer wanted in U.S. for art fraud nabbed in Spain
- Easter morning delivery for space station
- Boxer Rubin ‘Hurricane’ Carter dies at 76
- Probe could complicate Rick Perry’s prospects
Ford workers approve new contract
DETROIT (AP) — Union workers at Ford Motor Co. overcame early opposition to a new four-year contract with the company and overwhelmingly approved the deal in voting that lasted two weeks.
More than 22,000 workers, or 63 percent of those who cast ballots, voted in favor of the pact, while almost 13,000, or 37 percent, opposed it, the United Auto Workers said in a statement Wednesday.
The vote means that new contracts have been approved at Ford and General Motors Co., with Chrysler workers just starting to vote on their deal. At all three companies, union leaders agreed to profit sharing and signing bonuses instead of annual pay raises, a novel concept that helps the companies control their costs yet rewards workers.
The contracts set the wages and benefits for 112,000 auto workers nationwide and also influence the pay at auto plants owned by foreign companies, auto parts supply companies and other industries.
As part of the deal at Ford, the company promised $4.8 billion in new investments in its U.S. plants and 5,750 new jobs.
Most workers won't get annual raises under the contract, but they will get profit-sharing checks, inflation-adjustment payments and other bonuses worth at least $16,700 through 2015. The deal at GM was similar, but the Chrysler pact has far smaller signing bonuses and profit-sharing checks.
UAW Vice President Jimmy Settles, the union's top Ford negotiator, said in a statement that workers at Ford were frustrated with the economy, a lack of pay increases and what he called "outrageous" pay packages for executives, yet they still approved the pact. Eighty-five percent of the union's 41,000 members at Ford cast ballots, he said.
"As the nation's economy remains stalled and uncertain and its employment rate stagnates, we were able to win an agreement with Ford that will bring auto manufacturing jobs back to the United States from China, Mexico and Japan," union President Bob King said.
The company said the deal means it will add shifts at four U.S. factories: Michigan Assembly in Wayne, Mich., near Detroit, where the Focus compact is made; the Chicago Assembly Plant, where Ford makes the Taurus sedan and Explorer SUV; Louisville Assembly in Kentucky, where Ford will make the new Escape small SUV; and the Auto Alliance plant in Flat Rock, Mich., which will get additional production of the Fusion midsize car.
The company also said it will move production of medium-duty trucks from Mexico to an assembly plant in Avon Lake, Ohio, near Cleveland.
"Our agreement is fair to our employees and it improves our competitiveness in the U.S.," Mark Fields, Ford's president for the Americas, said in a statement.
Despite the signing bonuses and profit sharing, analysts expect a minimal impact to Ford's labor costs, in part because most of the new workers will be hired at lower wage rates than the company's longtime workers. Brian Johnson, an auto analyst with Barclays Capital, estimates the contract will add about $70 million to Ford's labor costs each year. If large numbers of older workers leave the company, Ford will spend even less, he said.
Mr. Johnson said Ford could see immediate benefits from the union approval in the form of a ratings upgrade, which would help lower its borrowing costs. Standard & Poor's Ratings Service has said it expects to raise Ford's corporate credit rating to "BB+" — which is one notch below investment grade — if the labor agreement is ratified.
Shares of Ford rose 6 cents to $11.84 in morning trading Wednesday.
TWT Video Picks
Women losing coverage under Obamacare, too
- Former Ranger breaks silence on Pat Tillman death: I may have killed him
- In Colorado, a marijuana holiday tries to go mainstream
- Scalia to students on high taxes: At a certain point, 'perhaps you should revolt'
- Special Forces' suicide rates hit record levels casualties of 'hard combat'
- USAID documents cite Hillary Clinton in chaos of Afghan aid
- Tactical advantage: Russian military shows off impressive new gear
- Feds approve powdered alcohol; 'Palcohol' available later this year
- CURL: Shelly O first lady Michelle Obama comes in last
- UNICEF launches 'Mr. Poo' mascot in India to curb public defecation
- See the scathing documents detailing $600 billion squandered in Afghanistan
Top 10 handguns in the U.S.