(October 4, 2011) DEARBORN, Mich. — Ford and the United Auto Workers union (UAW) have reached a tentative agreement on a new four-year labor contract covering approximately 41,000 UAW-represented employees in the United States.
 
The agreement — which is subject to ratification by UAW members — calls for 12,000 hourly jobs to be added in Ford’s U.S. manufacturing facilities through the term of the contract in 2015.
 
The new jobs commitment includes additional in-sourcing from Mexico, China and Japan, and is nearly double the company’s previous commitment to add jobs in the U.S.
 
The agreement includes $16 billion in U.S. investments — including $6.2 billion for Ford plants in the U.S. all to design, engineer and produce more new and upgraded vehicles and components by 2015.

The tentative deal also includes a $6,000 signing bonus upon ratification and another $7,000 in "inflation protection" payouts over the course of the contact in lieu of cost-of-living pay increases.

"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," UAW President Bob King said in a statement.

“We are pleased that, by working together with the UAW, we reached a deal that is fair to our employees and that improves Ford’s competitiveness in the U.S.,” said John Fleming, Ford’s executive vice president of Global Manufacturing and Labor Affairs. “This agreement allows us to make even more progress on our One Ford plan and our focus on the great products, stronger business and better world that will deliver continued profitable growth for all.”
 
The UAW will share details of the agreement with its local leaders and members in the coming days as part of the ratification process. Ford will discuss more specifics once the agreement becomes final.

Sources: Ford Motor Co., Automotive News