LIMA — A $250 million in investments and job security may come to the Ford Lima Engine Plant if workers ratify a tentative agreement.
The United Auto Workers union and Ford Motor Co. formed a tentative agreement Friday and the UAW released some details of the agreement this week in a contract summary.
The summary shows the $250 million going to the Lima plant if the contract is ratified by UAW membership and about $1.5 billion going to the state overall.
The local money will go toward upgrading the 3.5-liter Twin Independent Variable Camshaft Timing engine, the 2.7-liter engine and to create two new V-6 engine displacements, according to the summary.
The agreement also includes $8,500 signing bonuses for all employees. If the contract is ratified, about $9.9 million would be injected into the local economy, spread among the some 1,165 employees Ford lists as working at the plant.
As for the money going to the state as a whole, well, Jim Lynch with Ohio Gov. John Kasich’s office said it means the state “stands to win big.”
“It’s clear that Ford increasingly sees Ohio as one of it’s main ‘go-to’ places because the Ford workforce here knows what it’s doing and Ohio has worked hard to be a good partner,” said Lynch, communications director for Kasich, in a statement. It’s great to experience and it’s great to be a part of the good things that are happening for Ford workers, our communities and our state.”
UAW Vice President Jimmy Settles called the contracts “one of the richest agreements in the history of UAW-Ford.”
“This agreement is significant for our members in that it creates a clear path for economic advancement for active members and rewards veteran employees for their sacrifices in recent years,” he said in a statement.
The tentative agreement was reached Friday and covers 53,000 workers at 22 plants, including Ford Motor Co. Lima Engine Plant.
Ford released a statement on the tentative agreement on Friday.
“The agreement, if ratified, will help lead the Ford Motor Company, our employees and our communities into the future,” according to a statement from John Fleming, executive vice present of global manufacturing and labor affairs at Ford.
Negotiations between the two groups first started in April, and were set to end in September, when the previous contract ended.
In the contract summary, International Union President Dennis Williams and UAW Ford Department Vice President Jimmy Settles wrote a message to UAW members.
“This agreement provides significant economic gains for all members, while simultaneously addressing the challenges of job security and future growth,” they wrote.
The contract includes a wage progression plan that ends the tiered wage system, a general wage increase and another in two years and more, according to the letter.
Williams and Settles urged its members to vote “yes” to ratify the contract.
As of September, UAW Local 1219 representing the Ford Lima Engine Plant had about 1,200 members. Jay Bell, president of Local 1219, declined to comment until Friday, when all members will have been notified of the tentative agreement and its contents.
Reach Danae King at 567-242-0511 or on Twitter @DanaeKing.