Gary Jones, President of UAW International (left) and Bill Ford, CEO of Ford Motor, shake hands on July 15, 2019 at Ford World Headquarters to begin negotiations for a new treaty.
DETROIT – Ford Motor and United Auto Workers have reached a preliminary deal on a new labor agreement Wednesday night without a strike.
The four-year deal involves $ 6 billion in new investments from Ford and the creation or retention of 8,500 U.S. jobs, according to
Other details of the proposed deal have not been disclosed. However, the pact is expected to share many of the same conditions as the recent alliance agreement with General Motors. This deal includes 3% raises or 4% lump sum bonuses each year of the contract, keeping approximately 3% of out-of-pocket healthcare costs and a way for temporary workers to become full-time employees.
GM also agreed to receive $ 1
Ford confirmed the proposed deal, which must be approved by local leaders and union members, but declined to provide further details.
"These were long and difficult hours, but I feel confident that they have been able to secure a contract that protects our member's future," UAW President Gary Jones said in a statement announcing the deal.  The Union has traditionally used "market models" with automobile manufacturers in Detroit. He chooses a "target" company to negotiate with first. Once the agreement has been negotiated and ratified, the union uses the treaty as a negotiating template with the other two carmakers.
Ford's negotiations with the union were expected to be less contentious and move faster than UAW's talks with GM, which included a 40-day strike that ended on Friday, costing billions of motorists.
The Ford contract will probably be at least a week or two from approval or rejection by union members. It still needs approval from local union leaders, who will meet in Detroit on Friday to vote on the deal. If the UAW's local leaders approve the proposed contract, approximately 55,500 UAW members must then vote for it.
If members vote on the deal, negotiators are expected to return to the negotiating table and the strike will again be an option
UAW, if the deal is ratified, should focus on Fiat Chrysler, the last of the Detroit automakers, The union has to negotiate for 2019.
UAW discussions with Fiat Chrysler are expected to be more contentious than those with Ford amid a federal corruption crackdown on the union that began with the Italian-American carmaker . There is also uncertainty about the company's future amid a potential merger deal, confirmed this week with French automaker PSA Group.