Louisville's Ford production workers reject UAW contract, but it's approved nationwide
Grace Schneider
On the final day of nationwide ratification voting, Ford hourly production workers in Louisville resoundingly rejected the four-year contract between the company and the United Auto Workers.
But that didn't derail approval of the contract nationwide. Ford Motor Co. and national UAW leaders reported that 56.3% overall cast votes in favor of the tentative agreement, which means the proposal will become the final terms of the contract in Louisville and at other Ford assembly plants across the country.
When voting ended after three days on Friday night, production workers at the Louisville Assembly Plant and Kentucky Truck Plant voted 67% against the pact and 33% in favor. Skilled-trades workers, whose ballots are tallied separately, voted 51% in favor and 49% against the deal.
In the deal, workers would receive $9,000 before taxes, plus lump sum payments for skilled-trades workers of $1,000 this year and in 2021. Veteran production workers also would be in line for a $60,000 retirement incentive.
Nationally:UAW workers ratify Ford contract securing $9K signing bonus, more
The UAW has estimated that the agreement provides economic gains worth about $29,500 for production workers and $32,500 for skilled-trades employees through 2023. That includes 4% bonuses this year and in 2021, 3% wage increases in 2020 and 2022, and annual $1,500 "inflation protection" payments.
Ford has also pledged to invest $1 billion into the Kentucky Truck Plant to build a new Super Duty, Expedition and Navigator models, with hybrid electric technology added for the SUVs. The Louisville Assembly Plant also would receive $100 million for building teched-up versions of the Escape and Corsair.
After contract voting began at some union halls, Ford announced that it had fixed a glitch in this year's tentative agreement that gives newer workers who have already received annual pay raises retroactive pay to catch up to the new contract's better pay scale.
Roughly 10,000 "in progression" workers hired after 2007 and still climbing the scale toward full pay of about $28 an hour would have been penalized if their employment anniversary day hit before the scheduled ratification of Friday.
Earlier:Ford-UAW contract to bring $1.1 billion in investments to Louisville
Results from Local 862 in Louisville were watched carefully by executives with the union and company because local hourly workers rejected the 2015 contract offer. That put the national ratification in jeopardy until a majority of workers at a Michigan factory voted in favor to push the deal over the top.
The latest contract for Ford's union workers comes after a six-week strike by fellow UAW workers against General Motors and a still-unfolding a scandal that has engulfed top UAW leaders in a corruption probe.
UAW President Gary Jones, who faces federal embezzlement charges, announced early this month that he'd take a leave of absence.
Ford said in a release Friday night that it will incur $700 million in additional expenses in the fourth quarter tied to the new agreement, primarily because of the ratification bonus.
Previously:GM's deal with the Uhas Louisville Ford workers feeling upbeat
Grace Schneider: 502-582-4082; gschneider@courierjournal.com; Twitter: @gesinfk. Support strong local journalism by subscribing today: courier-journal.com/graces​​​​​​​.
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