© Reuters. Members of the United Auto Workers (UAW) union picket outside the Ford truck plant in Kentucky after going on strike in Louisville, Kentucky, U.S., October 12, 2023. REUTERS/Luke Sharrett
(Reuters) – The United Auto Workers (UAW) said on Wednesday it had reached an agreement with Ford Motor (NYSE: Co) on a local contract covering workers at the automaker's truck plant in Kentucky, avoiding a strike.
The union said last week that its members at the plant, which has 9,251 employees and makes Ford's most profitable F-series trucks, among other vehicles, would strike this week if local contract issues were not resolved.
The new contract addresses issues related to skilled trades and worker health and safety, among others.
It is separate from agreements that the three Detroit automakers – Ford, General Motors (NYSE:) and Stellantis (NYSE:) – signed with the United Auto Workers (UAW) last year to offer record wage increases to some 150,000 members.
In addition to national contracts, the union also negotiates local agreements on plant-specific issues at each facility.
Ford confirmed the new contract and said it was “pleased to have reached tentative agreement on a new labor contract with UAW Local 862 covering the Kentucky Truck Plant and 8,700 valued UAW-Ford employees.”
The deal comes on the heels of Ford seeking to abandon its shift to electric vehicles and ramp up production of its higher-margin gasoline and hybrid models.
The Kentucky plant generates about $25 billion in annual revenue, representing about one-sixth of the Detroit automaker's global automotive revenue.
