Updated Sept. 18
Ford Motor Co., Dearborn, Mich., and the Canadian Auto Workers union on Monday reached a four-year labor agreement that places new hires into a hybrid retirement plan, confirmed Shannon Devine, spokeswoman for the union.
Current workers and retirees in the current Ford pension plan will not be affected.
The hybrid plan will be an equal split of defined benefit and defined contribution plans, but the union is not releasing details on the DC contributions until members vote on the overall contract this weekend, Ms. Devine said in a telephone interview.
The CAW is still negotiating with General Motors Co. and Chrysler Group LLC and has extended the deadline indefinitely “as long as progress is being made at the bargaining table,” according to a union news release.
Ms. Devine said there could be some minor modifications for contracts with GM and Chrysler, but “generally, we ask them to adopt the pattern.”
“Ford was the one showing they were most willing to come to an agreement,” Ms. Devine said.
Ford's non-U.S. defined benefit plans had $19.2 billion in assets and $25.2 billion in liabilities, both as of Dec. 31, according to Ford's latest 10-K filing. The asset amount for the DB plan for employees represented by CAW could not be immediately learned.