Ford Motor Co. reached a tentative deal last Wednesday with its tool and die workers represented by Local 600 of the United Auto Workers in Dearborn, Michigan, according to a Sept. 25 press release.
The union said the agreement would strengthen job security at the automaker’s River Rogue facility by protecting against the impacts of advancements in 3D printing. It would also establish a process to secure additional die work as required, the release said.
About 500 UAW members at the plant will review the agreement and take part in a ratification vote in the coming days. If approved, the UAW said the deal will set a new standard for skilled trades at Ford.
“The members at the Rouge Complex understand the power of strength in numbers,” UAW Vice President Chuck Browning said in the release. “They stuck together and showed Ford that they were willing to stand up if necessary to win what they deserve.”
The U.S. labor agreement ratified in 2023 is estimated to cost Ford $8.8 billion through 2028, the automaker said in December. At the time, the company said it would work to offset anticipated costs by reducing expenses and increasing productivity.
Ford CFO John Lawler said the company was looking at “opportunities in automation” to lower costs when discussing how much the deal would impact its bottom line. But, some experts argue automation may not be the money-saver automakers hope for unless they’re willing to invest more in expanding the technology.