Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Ford Reaches Pact With UAW on New Contract, Averting a Strike

Stock Markets Oct 30, 2019 11:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
GM
-2.67%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
F
-2.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Bloomberg) -- Ford Motor (NYSE:F) Co. reached a tentative agreement with the United Auto Workers on a new labor contract for its U.S. workers, likely sparing the carmaker from a work stoppage that cost crosstown rival General Motors Co (NYSE:GM). billions.

The accord, which includes $6 billion of product investment in U.S. facilities and creating and retaining more than 8,500 jobs, will be subject to review by the UAW’s Ford council, and then a ratification vote, according to a statement.

The union turned its attention to bargaining with Ford on Oct. 25 after ending a 40-day strike against GM that the company estimates will lower earnings this year by about $2.9 billion.

“This was an expensive deal at GM and it’s going to be ever more expensive at Ford, depending on what offsets Ford was able to get to tailor it to their needs,” said Kristin Dziczek, vice president of the labor and economics group at the Center for Automotive Research.

Ford can ill afford a strike. After paring back its profit forecast for the year last week, S&P Global Ratings became the second credit grader to cut its rating on the carmaker in as many months. S&P called Ford’s performance subpar and outlined risks to Chief Executive Officer Jim Hackett’s $11 billion turnaround plan, including sluggish industry sales and costly emissions standards.

The UAW also had less reason to take a hard-line approach to negotiating with Ford. Whereas GM was seeking to close several U.S. plants, Ford entered talks having made commitments to invest in electric and self-driving car facilities in Michigan. The company also employs more UAW members than GM or Fiat Chrysler Automobiles NV.

Ford Reaches Pact With UAW on New Contract, Averting a Strike
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email