DETROIT (Reuters) -- A tentative deal between Ford Motor Co. and the UAW offers a richer payout for Ford's 41,000 workers than the newly ratified contract at General Motors Co. The UAW expects ratification of the Ford deal by Oct. 17, two days before the expiration of the union's current labor contract with Chrysler Group LLC, controlled by Fiat S.p.A.
Highlights of the Ford deal:
JOBS/INVESTMENTS
- The deal creates 5,750 hourly jobs, on top of 7,000 new and retained jobs previously announced as a target by Ford.
- Ford pledged to invest $6.2 billion to retool and upgrade its U.S. plants. Of that total, $4.8 billion was not previously disclosed.
- Ford will shift some assembly of the Ford Fusion sedan to its plant in Flat Rock, Mich., from Mexico, and add a second shift of workers at the U.S. factory. The plant will also receive the next-generation Mustang.
- Ford will invest more than $1 billion in the Kansas City assembly plant, which now builds the F-Series truck. A second shift will be added in 2012. The next generation F-Series truck and a small van, the Transit Commercial Van, will be built at the plant.
- The Louisville, Ky., assembly plant will build the new Ford Escape crossover in 2012 as well as a new product, which will require a third shift.
- The Twin Cities assembly plant in Minnesota will close with the end of the Ford Ranger small pick-up truck at the end of 2011.
ENTRY-LEVEL WORKERS
- Entry-level wages will rise from about $15.50 an hour to as much as $19.28 an hour by the end of the four-year agreement, in line with hourly pay at GM.
- Improvement to health care coverage, including unlimited $20 co-pay office visits and annual physicals.
BONUSES
- Over the life of the contract, veteran Ford workers could receive at least $16,000 in bonuses and other lump sum payments. That does not include profit-sharing bonuses for the second half of 2011 and for 2012 through 2014.
- Veteran UAW workers will get a $6,000 bonus when the deal is ratified. Workers with less than a year of seniority will get a signing bonus of $5,000.
- All workers will get $1,500 in "inflation protection" bonuses each year from 2012 to 2015.
- Workers get $250 "competitive bonus" each year from 2012 to 2015.
- Profit-sharing will be based on North American profits, instead of the more narrow measure of U.S. earnings. Ford will have to report North American profits in its regulatory filings.
- Profit-sharing bonuses will be paid annually. For 2011, the first six months of the year dictate a pre-tax profit-sharing bonus of $3,752.
HEALTHCARE COVERAGE
- Co-payments for prescription drugs will increase 3 percent a year over the life of the contract, capped at a $1 increase per prescription.
- The UAW and Ford are discussing a way to divert 10 percent of the profit-sharing fund to the UAW Retiree Medical Benefits Trust.
BUYOUTS
- $50,000 bonus for eligible employees who retire by the end of March 2012
- $100,000 bonus for skilled trades who retire by the end of March 2012
- Skilled trades will also be offered a one-time payment of $50,000 to shift to a production job with lower hourly wages.
Automotive News staff contributed to this report.
