20 October, 2011UAW's tentative four-year agreements with Ford and Chrysler focus on jobs and investments. If accepted by 67,000 USW members at Ford and Chrysler, thousands of new jobs will be created.
USA: The agreement with Ford adds 5,750 new UAW jobs which means that with jobs previously announced Ford will create more than 12,000 new jobs. Many of the jobs will be added by the end of 2012. The agreement also specifies investments of $16 billion to produce more new and upgraded vehicles and components by 2015.
UAW further made important gains in income and benefits in the tentative agreement. Entry-level wages were increased to US$19.28 an hour over the term of the agreement. Workers will get a $5-6,000 settlement bonus depending on seniority, US$7,000 in inflation protection and other lump-sum payments over the term of the agreement. Current health care benefits were maintained and improved.
During the two weeks preceding October 19 Ford workers voted largely in favour of the tentative contract, with 85 per cent of the 41,000 UAW members voting, making the contract the second agreement ratified with the US automakers, after the agreement with General Motors.
Also the tentative agreement with Chrysler, covering 26,000 UAW members, secures current jobs and adds an additional 2,100 jobs during its duration. It also includes a significant commitment from Chrysler to invest in plants, and in engineering and design to bring new and upgraded car models. US$4.5 billion will be invested directly into retooling and upgrading.
At Chrysler too, new hire wages are increased to US$19.28 an hour over the term of the agreement. New hires now earn about $14.65. First-tier workers, as at GM and Ford, receive no raise. A ratification bonus of US$3,500 will be paid, one half in 2011 and one half in 2012. In addition to that, there will be US$1,000 in annual Quality and Performance bonuses and up to US$1,000 in an annual "Upside Bonus" on achieving World Class Manufacturing (WCM) metrics.