Ford-UAW contract ratified by 63% workers

US automaker Ford and the United Auto Workers (UAW) confirmed yesterday that their new four-year contract was ratified by 63 per cent of workers who cast ballots.

According to the statement released by the UAW, more than 26,000 workers voted in favor of the contract, while nearly 15,000 opposed it.

The approval of the contract means that workers have agreed to profit-sharing and signing bonuses instead of annual pay increases. It will allow the manufacturer to control costs and yet reward workers.

Union President Bob King said the contract would generate more auto manufacturing jobs in the country.

Speaking on the topic, Mr. King said, "As the nation's economy remains stalled and uncertain and its employment rate stagnates, we were able to win an agreement with Ford that will bring auto manufacturing jobs back to the US from China, Mexico and Japan."

As a part of the contract, Ford will make $4.8 billion worth of new investments in its US plants, creating more than five thousand new jobs.

The ratification of the new contract is expected to allow the Dearborn, Michigan-based auto giant to enjoy a lift in credit rating by rating agencies. Standard & Poor's and Moody's Investors Service has already announced that it was reviewing their credit rating for Ford, which was downgraded to junk status around six years back.