*Ford Motor Co. and the United Auto Workers have come to terms on a new four-year contract that trades annual pay raises for profit sharing and a signing bonus and promises thousands of new jobs building cars and trucks.
Both the union and company said in statements that they would announce details on Tuesday.
Ford shares fell 10 cents to $9.27 in pre-market trading.
The agreement is expected to reduce Ford’s hourly labor costs, which are the highest in the U.S. auto industry. But it is likely to add thousands of new union jobs, depending on growth in U.S. auto sales. Already Ford has promised to add more than 7,000 jobs in the next two years, including engineers and factory workers.
The pact still must be approved by Ford’s 41,000 UAW members in voting that will start next week. Approval could be a problem because many expected the company to restore pay raises and other benefits they sacrificed to help Ford through tough financial times starting in 2007.
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