Ford, UAW reach tentative agreement

According to Reuters, Ford and the UAW have reached a tentative agreement that would include a “no-strike” clause and a wage freeze for new hires. Ford official say that the deal was necessary to make the contract similar to other U.S. automakers.

In exchange for the major concessions from union officials, the pact also includes some additional benefits, including a one-time bonus and some production commitments. The changes – which still need to be ratified later this week by National Ford Council delegates – will impact about 41,000 UAW workers employed by Ford and replace a four-year contract agreed upon in 2007.

Ford was looking for help from the union to remain competitive with rival car makers such as GM and Chrysler. Ford was the only of the “Big Three” U.S. auto companies not to file for government-supported bankruptcy protection, and did not benefit from the renegotiations the other two companies engaged in with the UAW in order to remain alive.

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