Ford Motor Co.’s new four-year contract with the UAW will have a minimal impact on the automaker’s structural costs and allow Ford to run its plants more efficiently to operate profitably in the United States. Hit the jump to read the rest of the story.
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The contract will allow Ford to keep its annual labor cost increases under 1 percent, the company said.
“Overall, this agreement allows Ford to better respond to market demand,” said Mark Fields, Ford’s president of the Americas in a conference call.
UAW-represented workers at Ford ratified the contract Wednesday. Members voted 63 percent in favor of the agreement, the UAW said in a statement.
Ford’s estimate of its labor cost increase confirms a previous estimate made by UAW President Bob King. General Motors, it its contract agreement, has a comparable labor cost increase.
