Detroit, Michigan – Members of the United Auto Workers Union (UAW) have voted to accept the tentative agreement between the union and Ford, although one of the first UAW locals to vote on the contract rejected it by a narrow margin.

Overall, production workers were 63 per cent in favour of the agreement, while skilled trades voted 65 per cent in favour. The contract is the second ratified agreement with the domestic automakers in the 2011 talks, with union members still to vote on a tentative contract reached last week with Chrysler.

The agreement adds 5,750 new UAW jobs, many of which will be added by the end of 2012 and the rest by the end of the contract.

Guarantees in the contract include Flat Rock, Michigan named as a second source for the next-generation Fusion and Mustang; Kansas City, Missouri as in-source for the Transit Commercial Van from Europe; a new, unnamed vehicle at Louisville, Kentucky in addition to the 2012 Escape; the C-Max hybrid and plug-in hybrid to Wayne, Michigan; and a medium truck and frame assembly from Mexico, along with an in-source motorhome chassis, at Avon Lake, Ohio. Three other assembly plants, ten engine and transmission plants, and three stamping plants will receive investments.

The contract includes a $6,000 settlement bonus, $7,000 in inflation protection and competitive lump-sum payments over the term of the agreement, a new, more transparent and simple profit-sharing plan in which workers will receive an average $3,700 first payment this year, and an increase in entry-level wages to $19.28 over the term of the agreement.

The union represents approximately 41,000 salaried workers in the United States.

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