UAW, Ford reach tentative agreement [UPDATE]

Ford and the United Auto Workers have agreed to a tentative labor agreement, according to Automotive News. The pact makes Ford the second domestic automaker to come to reach an accord with the labor union, and the deal covers some 41,000 workers. The agreement is expected to be discussed in further detail during separate press conferences held by representatives from the UAW and Ford. While no solid details are available as of the time of writing, Automotive News suggests that the deal may be very similar to the one that General Motors and the UAW recently agreed upon.

That means that we can likely to expect to see Ford planning to add or maintain domestic jobs through a variety of plant investments. Even so, Ford had sought to reduce its labor costs heading into negotiations. Some analysts suggest that Ford pays anywhere from $2-9 more per labor hour than GM or Chrysler once benefits are accounted for. Additionally, Ford has fewer lower-paid workers than either of its two domestic competitors, and the automaker pays those workers more.

Stay tuned for details on the agreement.

UPDATE: Ford has released an official press release (available after the jump) stating that the automaker will add 12,000 hourly jobs in its U.S. manufacturing facilities by 2015. What's more, Ford will invest $16 billion in the U.S. for new vehicles and components by 2015.
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UAW, Ford Reach Tentative Agreement on National Labor Contract to Add 12,000 U.S. Jobs, Significant Investment

Ford commits to add 12,000 hourly jobs in its U.S. manufacturing facilities by 2015, including in-sourcing from Mexico, China and Japan; this is 5,750 hourly jobs more than the previously announced 7,000 U.S. positions to be added by year-end 2012

Ford pledges to invest $16 billion in the U.S. – including $6.2 billion for U.S. plants – to design, engineer and produce more new and upgraded vehicles and components by 2015

Ford says the agreement is fair to its employees and that it improves the company's competitiveness in the U.S.

The new jobs and investment commitments in the UAW-Ford tentative agreement are contingent upon ratification of the agreement by the UAW membership

DEARBORN, Mich., Oct. 4, 2011 – Ford Motor Company 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.

"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.

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