Ford Motor Co. will book a $600 million charge in the fourth quarter for signing bonuses paid to union workers under a new four-year contract.
But the company said Monday that the deal with the United Auto Workers limits labor cost increases to 1.5 percent per year and is consistent with its full-year financial guidance. Ford is forecasting a pretax profit of between $8.5 billion and $9.5 billion this year.
The new contract gives raises to all of Ford's 53,000 U.S. hourly workers and eliminates a two-tier wage system at its plants over eight years.
Ford also agreed to $9 billion in U.S. factory investments and said the deal would add or secure 8,500 U.S. factory jobs....