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Deals adds little to Ford’s labor cost

In July, the UAW’s Bob King (left) and Ford executive chairman William Ford marked the start of contract talks. In July, the UAW’s Bob King (left) and Ford executive chairman William Ford marked the start of contract talks. (Rebecca Cook/reuters/File 2011)
Associated Press / October 21, 2011

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A new contract between Ford Motor Co. and the United Auto Workers union will raise the automaker’s labor costs by less than 1 percent a year, reaching a company goal of holding costs fairly steady, executives said Thursday. The four-year deal will raise costs by $280 million this year and around $80 million per year after that, but the increases will be offset by higher factory efficiency, other wage and benefit changes, and by hiring more workers at lower wages, the executives told reporters and industry analysts. Ford’s 41,000 union workers approved the contract Wednesday.

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