iOS app Android app More

Ford, UAW Reach Tentative Contract: Union

Ford Uaw Contract

First Posted: 10/04/11 09:14 AM ET Updated: 12/04/11 05:12 AM ET

DETROIT (Reuters) - Ford Motor Co and the United Auto Workers union have reached tentative agreement on a new four-year labor contract, the union said Tuesday.

No further details were disclosed. The company and the union scheduled separate press conferences for later Tuesday.

Ford's 41,000 unionized workers expected a richer deal than one ratified last week for 48,500 GM workers. Unlike General Motors Co and Chrysler, Ford did not undergo a federally funded bankruptcy and bailout in 2009.

A deal at Ford will allow the UAW to focus on Chrysler Group LLC, the weakest of Detroit's three automakers and where analysts expects negotiations to be tougher.

Chrysler, majority-owned by Italian automaker Fiat SpA , has about 23,500 UAW-represented workers. Sergio Marchionne, chief executive of both Chrysler and Fiat, is under pressure to hold the line on costs, and a deal at Chrysler may be the most difficult for the UAW, analysts say.

The contracts at all three automakers were to expire on Sept. 14 but were extended. Ford's contract was extended indefinitely and Chrysler's contract was extended to Oct. 19. (Reporting by Ben Klayman and Bernie Woodall in Detroit; editing by John Wallace)

Copyright 2011 Thomson Reuters. Click for Restrictions.

FOLLOW HUFFPOST BUSINESS
Subscribe to the HuffPost Money newsletter!
Filed by Jillian Berman  |