UAW National Ford Council votes to recommend ratification of tentative agreement with Ford Motor Co.
DETROIT – The UAW National Ford Council voted Friday to recommend ratification of a tentative agreement with Ford Motor Co.
The proposed contract will now go before Ford's 55,000 union workers who will decide to ratify or reject it. Local unions will proceed with informational meetings and ratification votes beginning Monday, with all local votes due into Detroit on Nov. 15.
The union contract includes $6 billion in promised “major product investments” in U.S. facilities and the creation and retention of more than 8,500 jobs with 19 facilities receiving investments.
It also includes no changes to workers' share of health care costs, a $9,000 ratification bonus for seniority employees and $3,500 for temporary workers.
Also included is closure of the Romeo Engine Plant.
“We at the UAW do not like any closures,” said Brian Rothenberg, noting that the union did negotiate a similar compensation package for Romeo Engine Plant workers as was brokered with GM for Lordstown workers.
Bill Dirksen, vice president, Labor Affairs, at Ford on Friday would say only that "Ford can confirm the UAW’s announcement that the UAW and Ford have reached a tentative agreement on a four-year contract. Further details will be provided at a later date."
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Ford UAW worker wins
The UAW did score a huge win in contract negotiations with Ford in keeping health care share costs stable. It was viewed as the single most important issue for Ford, which employs more hourly workers in the U.S. than its competitors. But GM agreeing to the status quo on health care costs set a pattern that would have been difficult to challenge.
GM workers got an $11,000 ratification check, but that's because their 40-day strike cost them about $6,000 in lost wages. It also cut their profit-sharing payout next year by about $3,000. Therefore, Ford's hourly workers are getting $7,000 more by avoiding a strike. They got on average $7,600 in profit sharing checks earlier this year, which was up $100 from a year earlier despite lower profits.
On Friday, union leaders from around the country gathered at the TCF Center downtown, formerly called Cobo Hall, to review the proposed tentative agreement and make their recommendation.
Here are some of the details of the proposed four-year contract revealed Friday:
- UAW-represented Ford workers will get a bonus of $9,000 upon ratification of the deal. Temporary workers get $3,500.
- The Romeo Engine Plant will be closed and 600 UAW workers relocated.
- Wage increases of 3% in the second and fourth years; 4% lump sums given in alternate years.
- Health care – no reduction in benefits or increases in costs.
- Current temporary workers get a path to permanent employment with the potential to reach the top wage rate during the life of the contract.
- Profit-sharing formula is maintained.
- A $1,000 pension contribution to the Tax-Efficient Savings Plan for hourly employees for those hired or rehired before Nov. 19, 2007, or in a skilled classification prior to Oct. 24, 2011.
- $60,000 retirement incentive for production workers and up to 200 skilled trades.
- Skilled trades get two $1,000 lump sums in 2019 and 2021.
- Job security: There is a moratorium on outsourcing and plant closures, except Romeo Engine. All jobs are to be protected and transferred to Van Dyke Transmission.
- There are assistance packages for retirement-eligible Romeo employees.
- A commitment to a Flat Rock viability strategy for new product.
- A commitment to Buffalo Stamping and securing future opportunities to the plant.
- So-called in-progression workers hired after 2007 get a faster path to top pay. Under the previous contract, those workers started at $17 an hour, would reach $28 an hour after eight years. Under the proposal, that is shortened to four years.
- Ford will invest $6 billion in U.S. facilities to create or retain 8,500 jobs.
Value to workers
The UAW summary noted that the value of the 4% lump sum in the first year is estimated around $2,700 for production workers and $3,200 for skilled trades. The effective date is December.
A 4% lump sum payout is also set for the third year of the contract, effective October 2021. That value is estimated at $2,800 for production workers and $3,300 for skilled trades workers.
The UAW summary listed the total value of economic gains over the life of the four-year agreement – including wages and bonuses – at $29,500 for the typical production worker and $32,500 for the typical skilled trades worker.
Path to permanency
Under the proposed contract, temporary workers at Ford will be eligible for full-time status after two or three years of service, based on an outline provided in the UAW summary.
On Jan. 6, all temporary workers with three or more years on the job will be granted full-time status. The time frame will be based on their most recent hire date or rehire date as a temporary worker.
Temps who hit three years of service during 2020 will be converted to full time.
On Jan. 1, 2021, eligible temporary workers with two or more years on the job at Ford – again from their most recent hire or rehire date – will be made full time.
Again, temporary workers who reach two years of service during the 2021 calendar year – and afterward for the duration of the contract – will be converted to full-time status. This applies to current and future temporary workers.
What happens next
Ratification is not a typical election process. The UAW notifies the locals on when to hold roll-out meetings that outline the proposal. The local UAW election committees then select the voting day and times. The committees tally the paper ballots and submit those results to the UAW International.
Here are the details:
- Ratification requires 50% of the total members, "plus 1" member.
- Each local UAW holds informational meetings at its choosing. For example, Local 163 which represents workers at GM's Romulus Powertrain plant will hold three informational meetings at the union hall Thursday and also vote that day.
- The voting is scheduled and run by UAW local election committees.
- The local UAW halls use paper ballots.
- The local UAW's election committees count the ballots and report it to international.
- The local election committees police themselves.
- There's no overall audit of the vote.
Contributing: Eric D. Lawrence