UAW workers at Ford will receive at least $16,000 in bonuses over the life of the deal, which includes early retirement offers for veteran workers and plans to shift some assembly work from Mexico. The bonuses and buyouts were more generous than those offered by General Motors Co.
"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 United States from China, Mexico and Japan," said UAW President Bob King.
Ford declined to comment in detail on how the agreement would affect fixed costs.
"We're very pleased that it will improve our competitiveness here in the United States," John Fleming, Ford's head of global manufacturing, told reporters.
GM previously said its UAW deal would have minimal impact on profits.
The union council representing Ford plants voted overwhelmingly to approve the deal, and it must now be ratified by the 41,000 UAW-represented workers, something union officials expect by Oct. 17.
Ford shares were up 3.2 percent at $9.67 on Tuesday afternoon after earlier falling to a two-year low.
Ford said on Tuesday it will create or preserve 12,000 US hourly jobs by 2015 if the deal is ratified.
That total includes 7,000 jobs previously announced by Ford, including 750 white-collar positions. The majority of the additional 5,750 jobs to be added will be at entry-level wages, the company said.
