Ford Agrees to Pay UAW Members $6,000 Signing Bonus
- Posted on October 4, 2011 at 4:37pm by
Becket Adams
- Print »
- Email »
United Auto Workers officials, left, and Ford Motor Company officials shake hands during a news conference for the start of national negotiations in Dearborn, Mich., Friday, July 29, 2011. AP Photo/Paul Sancya
Ford and the United Auto Workers negotiators have agreed on a deal earlier today that will “create or maintain 12,000 jobs in the U.S.” Under the agreement, Ford has pledged to hire 5,750 new U.S. workers and invest $4.8 billion in its factories, reports the Associated Press.
Ford Motor Co. has also agreed to pay its U.S. factory workers a $6,000 signing bonus and $3,700 in additional profit sharing as part of a four-year contract deal.
“Many of these jobs will be added by the end of 2012, and all will be added during the term of the new contract,” UAW President Bob King said in a recent Wall Street Journal report. “The American auto industry is on its way back.”
“The key to adding jobs is the lower wage for entry-level workers of around $17 an hour, compared to the $28 an hour wage that veteran UAW workers earn,” reports the Journal. “The lower rate is also competitive with the wages that nonunion workers get at U.S. plants owned by foreign auto makers such as Toyota Motor Corp. and Honda Motor Co.”
“The introduction of the two-tier wage system combined with the UAW’s willingness to keep the fixed costs in check means a win-win for the UAW and the auto makers,” said Morningstar Inc. equity analyst David Whiston in the Journal report. “UAW is adding more members to its ranks while GM and Ford benefit with cheaper labor that allows them to be more strategic in how they use their U.S. plants.”
According to USA Today, these are some of the other details included in the tentative deal:
- Raises over time for so-called “tier two” workers hired after 2007, so that the highest-paid will eventually make $19.28. Those workers currently make roughly half the $28-an-hour their first-tier counterparts earn. The raise in the tier-two wage matches that in the GM deal.
- Buyouts of $50,000 to production workers and $100,000 to skilled-trades workers, in an attempt to replace highly-paid workers with entry-level employees.
- Four $1,500 lump-sum bonuses over the contract term. In total, the lump-sum payments will double the amount GM workers received in so-called “inflation-protection” bonuses in the new contract they recently approved.
- Ford will bring back some production of its Fusion mid-size car from Mexico, returning the jobs to the U.S. The 1,600 workers at Ford’s plant in Flat Rock, Mich., will build the new-generation Ford Fusion, along with continuing to build the Ford Mustang. That factory, which will receive a $500 million investment, had an uncertain future, since its production of the Mazda6 is to end in the coming months.
- Ford will invest $1 billion at a Kansas City assembly plant, which will build the Transit, a full-size commercial van Ford now sells in Europe. It is substantially larger than the current Transit Connect small truck.
- Ford will make a $128 million investment in Avon Lake, Ohio, to build medium-duty trucks and motor-home chassis.
- Workers will receive overtime after eight hours worked in a day, rather than after a 40-hour work week. For instance, Ford could not use a 10-hour/ four-days-a-week work schedule without paying overtime.
“We believe at the end of this that we will be able to improve our overall competitiveness in the U.S.,” said John Fleming, Ford’s executive vice president of global manufacturing and labor affairs said at a press conference Tuesday.
Ford said the deal will bring work to the United States from Mexico, China and Japan. Including design work, engineering and other expenses, Ford said its total investment in the United States through 2015 would be $16 billion, reports The New York Times.
The signing bonus of $6,000 will be paid if Ford workers ratify the agreement. Votes are expected to take place next week.
The Associated Press contributed to this article.
Popular Stories
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 690 Comments
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 480 Comments
Obama: RNC Like Watching ‘Black-and-White TV’ Because Romney ‘Did Not Offer a Single New Idea’ 375 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 336 Comments
‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 323 Comments
Faith
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 310 Comments- Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More
- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 323 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
President Obama Issues Major ‘Green Energy’ Executive Order 219 Comments- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 148 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 302 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 310 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (83)
suzy000
Posted on October 5, 2011 at 12:35amThey are getting the crap out of Mexico…they have had this in the works since the hostile environment over there is getting worse. Also, those transit vans they intend on selling in Europe in the future probably won’t materialize in the amounts they had hope to sell. Europe’s future looks glum. I question the future of the new plant they want to build because those trucks they will be manufacturing will probably only be sold to their workers….no one else is creating jobs. Ford really has a bright picture of America in the future…I sure hope they are right and the economists are wrong….only time will tell….in the meantime…keep storing the canned goods…it doesn’t look promising.
Report Post »LaBelle
Posted on October 4, 2011 at 11:50pmI’ll stick with my Toyota TYVM, it was built in America by NON union members. I use to like Ford but the unions are not getting any more of my money. It’s deals like these that have caused the increase in vehicle prices over the years, the more the unions get the more that is taken out of our pocket via sky high prices. Now THAT is redistributing the wealth right there.
Report Post »HMwHC
Posted on October 5, 2011 at 6:12amI‘ll have to say that I’m a true blue oval guy. I didn’t say a NEW blue oval. I’ll always drive a Ford, it’s just 32 yrs old and the wifes is 11. We’ll never buy new again. Shoot, you can’t even work on new vehicles anymore. Nope, just give me old school and I’ll be happy. Good luck to ya Ford….you made your bed, that don’t mean I need to get in it with ya.
Report Post »Cat
Posted on October 5, 2011 at 7:44amOT
Report Post »What’s up with the Ben Bernanke page?
No comments allowed?
chazman
Posted on October 6, 2011 at 4:54am… wow, Ford cars and trucks are gonna be really expensive. Thanks for the heads up, FORD (Found On Road Dead).
Report Post »adastra2005
Posted on October 4, 2011 at 11:30pmInteresting … negotiating with your competitor. After all, UAW owns a good portion of GM and Chrysler. Almost as bizarre as unions negotiating with politicians where one side is paid with contributions from the folks they are negotiating with … all with our money. No wonder America is in decline.
Report Post »georgeisn6
Posted on October 4, 2011 at 10:38pmWhat is more importment is , did the workers get their beer and weed lunch brakes in the contracts; even though ford sold the farm with the bonus, GM and Chrysler are more generous with their beer and weed clauses in their contracts, you folks would not want your autos build by people who did not enjoy their lunck would you?
Report Post »georgeisn6
Posted on October 4, 2011 at 10:23pmI will be looking very closely at what kind of autos are being built in Bangladesh when I start shopping for my next car;
Report Post »AJC1973
Posted on October 4, 2011 at 10:22pmgood for ford good for the workers if they can come up with an agreement that benifets them both good… the question iw ould ask not seeing hte actual contract.. why is it MORE profitable for Ford to LURE its workers into signing this contract with 6k in signing bonuses? makes me think there is probably soemthing really bad in here that the workers will regret later… its really hard to see without seeing the entire contract… and promises of profit sharing does not equate to profit sharing if they dont make a profit they dont get any bonus… its a win win only in a good economy and an economic downturn its empty promises no raise and no bonus but here sign this and ill give you a few peices of silver…
Report Post »realistic_01
Posted on October 5, 2011 at 1:00amSo in your world, workers who don’t produce a product that people want to buy (i.e. a downturn) should still be entitled to a bonus and a raise? And who said that it was Ford’s idea to give $6K signing bonuses? It sounds more like the unions demanded the $6K signing bonuses since the new employees would get less salary to start than their union counterparts did, hence the “bonus”.
I was thinking about buying a Ford. Not now.
Report Post »melmatmic
Posted on October 5, 2011 at 12:24pmIt sounds like the signing bonus is for the existing employees too. What gives??
Report Post »Dearborn
Posted on October 18, 2011 at 7:04amYou people are a bunch of fools.. So with all the Union bashing, why is there no mention of ungodly salary bonus’. The workers got the signing bonus in lue of yearly raises, of which they haven’t had in six years. Not to mention the bonus’ they gave BACK to the Ford so it could be viable.
Report Post »The signing bonus is a one time payment that does not affect their operating costs. If they pay that out it is basically taken out of future profit sharing is it not?
All I ever hear is anti-union antics..really it comes down to just one thing..JEALOUSY..
AZKate
Posted on October 4, 2011 at 10:19pmWell I guess we know now why they pulled that ad off about wanting to buy an American car from a company that didn’t take a bailout. They have crawled into bed with the Unions and Obama. Bye Ford, we knew you when…
Report Post »Jaycen
Posted on October 4, 2011 at 11:08pmAgreed. My next new car purchase will be from a company that doesn’t support unions. Failing that, I’ll buy used until the market is free or until I die.
Report Post »TouchStoneMT
Posted on October 4, 2011 at 10:18pm“union” = “extortion”
Report Post »cassandra
Posted on October 5, 2011 at 7:39amI concur UNION = EXTORTION
Report Post »cknapp
Posted on October 4, 2011 at 10:12pmA signing bonus for a factory job? We have Soldiers signing up to join the Army, knowing they are likely to deploy that do not receive this type of bonus.
Why do onions have so much power? They have nothing invested in the business, did not assume risk, have no “skin in the game”.
I am 50, and have never worked for an onion, and have never been out of a job since I started working full time at the age of 17, yes I graduated High School at 17.
Craig Knapp
Report Post »Age 50
Akbarjonnie Shaheed
Posted on October 4, 2011 at 9:57pmSorry…..no more Fords for me.
Report Post »Berealalready
Posted on October 4, 2011 at 10:04pmThe problem is, I want to buy an American car and GM and Chrysler are already on the s – - – list.
Report Post »Blazer123
Posted on October 4, 2011 at 10:59pmbuy a Toyota built in the US, ez game.
With higher than the national avg. unemployment in Michigan do they really need to offer a signing bonus? I don’t have a job, I’d love to make $17/hr +benefits (beer and weed breaks too, right?)
Report Post »CarolinaGirl
Posted on October 4, 2011 at 9:19pmExcuse me while I go outside and throw up in my Ford Taurus. I WILL NEVER BUY another Ford again.
Report Post »HK91
Posted on October 4, 2011 at 9:21pmI’m with you
Report Post »proantisocialist
Posted on October 4, 2011 at 10:01pmhate to dissapoint but word here in ohio is ford may close avon plant,just as they did in lorain which is 10 miles west of avon..seems like same game they played in lorain promised more work then closed…
Report Post »infidelpenguin
Posted on October 4, 2011 at 9:15pmWhere is the win-win. The customer is the one taking it in the butt. Ford shells out to the unions to avoid a strike and will stick the customer with the extra cost of supporting the financial well being of the unions. No wonder UAW President Bob King is all ***** and giggles. With all these new hires, his paycheck gets a real kick upward. Nice pay raise off the sweat and labor of the Union workers. And you fools say nothing about these thieves. But, you allow the Democrats and Republicans to demonize CEOs of corporate America. Pull your heads out of your butts. See unions for what they really are, a cancer on the American worker.
Report Post »hogtrashhd
Posted on October 4, 2011 at 8:57pmI’m still with Ford.. they just got ramrodded by this adminstration… you know the old saying.. pick your battles wisely… when we win in 2013.. things are going to change dramatically from this corrupt admin that we have now… and we citizens will be there to hold their feet to the coals .. no more of this crap from the dems or the repubs.. we will not let them keep on with their socialist agenda.. BOTH of the partys will HAVE to change or they will be voted out.. it’s not unheard of to have a new party other than dems or repubs.. at least we can make them squeal until they do start doing right by this country and not just for themselves and their buddys..
Report Post »motonutt
Posted on October 4, 2011 at 9:19pmNo wonder why your average car costs $47,000.00. When I was young a young person could buy a new car. I bought a couple in my younger days. But now day’s forget it. Then on top of that Obummer want’s to make it illeagle to drive your old one. I heard he want‘s to make it so you won’t be able to register a car older that 2001. That leaves me and my old chevy pick-up out.
Report Post »melmatmic
Posted on October 5, 2011 at 12:30pmMOTONUTT – I am in the same boat. A 1994, a 1999, and a 2002 pickup. At least I can still drive my gas guzzler. That’s why we have the other two for daily drivers that are very economical.
Report Post »We the people of the republic
Posted on October 4, 2011 at 8:47pmALL DONE WITH YOU TOO FORD MOTOR CO.
Report Post »Fords was thought of as one of the last great American companies for NOT taking bailouts…. while they remain UNIONIZED I will have nothing to do with them…. I will buy used from here out till they shut down UNIONS or get them under control so cost DON’T go up OR stay the same.
Cars NEED TO become cheaper as they were meant to be before UNIONS drove up the cost.
I agree we all need jobs but look who has the jobs, UNIONS, and why? because STATES like Michigan with no right to work laws are favoring UNIONS AS USSUAL.
DOWN WITH NO RIGHT TO WORK STATES!
UNIONS ARE DRIVING UP OUR COST OF LIVING AND THEY BENNIFIT FROM IT WITH THESE OUTRAGOUS! BENIFIT PACKAGES AND BLOATED WAGES.
CARAGIA
Posted on October 4, 2011 at 8:59pmNot to mention the strangle hold the unions have on Washington, our legal system and the corporations they hold hostage.
Report Post »RightPolitically
Posted on October 4, 2011 at 8:43pmThe influx of foreign automobile manufacturers onto American soil has put pressure on the UAW to become more realistic. That is a good thing. Although I do not believe unions HAVE ANY PLACE in public sector jobs that are supposed to be “public service,” unions do have a right to exist in the private sector……. BUT SO DO NON-UNION SHOPS! What’s good for the goose……..
Report Post »Fina Biscotti
Posted on October 5, 2011 at 3:44amThe Unions are getting into the Fray = Occupy Wall Street.
The Bus Drivers Unions are refusing – to transport – protestors – arrested by the NYPD.
They are refusing to perform their jobs!!!! They should be FIRED!
Report Post »Redistributor
Posted on October 4, 2011 at 8:30pmThis is a good thing!
Report Post »mashuser2
Posted on October 4, 2011 at 8:23pmYou guys are disgusting. You are now jealous of unemployed Americans getting a job and feeding their families. Get a life. If this is how you feel, you officially deserve the country you’re bringing down. Go RON PAUL!
Report Post »TEARS FOR AMERICA
Posted on October 4, 2011 at 8:22pmFORD…get back to basics and truth…stop the union madness and thrive.
Report Post »iamsaved
Posted on October 4, 2011 at 8:17pmNo GMs! No Chryslers! And no Fords! I won’t buy any, at least not until the UAW gives back it’s ill -gotten gains in company stock from the bailouts and until GM and Chrysler pay back every dime that was given to them in the bailout and the government sheds its ownership in those companies.
The unions have abused their power long enough. Too bad its members are too stupid to realize they are being bilked of their union dues by their leadership in order to keep the liberals in powers.
Report Post »mashuser2
Posted on October 4, 2011 at 8:23pmYou guys are disgusting. You’re now jealous of unemployed Americans getting a job and feeding their families. Get a life. If this is how you feel, you officially deserve the country you’re bringing down. Go RON PAUL!
Report Post »fredinflorida
Posted on October 4, 2011 at 8:08pmI refuse to buy a government motors car and I will not buy a ford because they caved to the unions. A lot of us could use these jobs and work at a cheaper pay because we need to pay our bills and not and strangle a company. Ford will not be able to compete and last by doing this.
Report Post »Rowwdy
Posted on October 4, 2011 at 8:32pmI am with you Fred. For over a 100 years Ford maintained better business sense than all other car manufacturers. NOW they cave. Too bad Tesla doesn’t make a mini van.
Report Post »TurnRight
Posted on October 4, 2011 at 8:07pmF- found
Report Post »O- on
R- road
D- dead
Irish Eyes Are Smiling
Posted on October 5, 2011 at 8:25pmF – Fix
Report Post »O- Or
R – Repair
D – Daily
South Philly Boy
Posted on October 4, 2011 at 7:57pmThis is why I refuse to buy a new car.
Report Post »IndyNWguy
Posted on October 4, 2011 at 9:42pmSmart. I’m of the same mindset… have been for years.
Report Post »the hawk
Posted on October 4, 2011 at 10:14pmMe too just paid off my van , was thinking off buying nice new car ,..but nop I’m gonna buy a good used one for haft the money……………..considering their now 3000$ more because of cash for clunkers !
Report Post »mad_hatter
Posted on October 4, 2011 at 7:47pm*** NEWS FLASH ***
Herman Cain has caught up to Romney in the National Polls… Will it last? ( http://url2it.com/ibhs )
Chuck Stein
Posted on October 4, 2011 at 8:06pmI hope not. I hope that Cain passes Romney up.
Report Post »the hawk
Posted on October 5, 2011 at 12:03amI’M A ******* for Cain ! ! Great Man !
Report Post »realistic_01
Posted on October 5, 2011 at 1:07am@The Hawk – ******* for Cain, love it! Let me know when you get those bumper stickers printed.
Report Post »donflow
Posted on October 4, 2011 at 7:44pmSo disappointed in Ford. I was so proud of them for not accepting the Obama stimulus funding…now I’m not so sure…
Report Post »Standing With Israel
Posted on October 4, 2011 at 7:16pmWhat good is a signing bonus if you can’t afford to hire the worker? How much more will Americans have to pay for a Ford to pay for the union goodies?
Report Post »megansmom
Posted on October 4, 2011 at 7:53pmactually you shouldn’t have to pay any more than now. They are cutting wages in half, getting rid of the higher paid employees by buying them saving the company millions.
Report Post »TomFerrari
Posted on October 4, 2011 at 8:45pmI think you misunderstood “signing bonus.”
Report Post »In this case, I believe “signing bonus” refers to “signing” the contract!
If I read it correctly, EVERY EMPLOYEE will get a “signing bonus” for ratifying this contract.
I could be wrong, but, it sounds like a “bribe” to sign a contract, without permanently giving them a raise which would affect ALL future pay rates.