Ford will close an engine plant in Michigan as part of UAW deal

WASHINGTON — Ford plans to close an engine plant in Romeo, Michigan as part of a tentative agreement with the United Auto Workers union for a new four-year contract, a source told Reuters Thursday.

The 600 hourly workers at the plant will be offered jobs at a nearby transmission plant or buyouts, a source said. The UAW said Wednesday the Ford deal “secured over $6 billion (£4.6 billion) in major product investments in American facilities, creating and retaining over 8,500 jobs for our communities.”

Ford is not immediately closing the plant but will close it at a future date under the UAW agreement.

Earlier this week, Canada’s largest private-sector union Unifor revealed that Ford will cut about 450 jobs at its Oakville assembly plant in Ontario, as the No. 2 U.S. carmaker discontinues production of the Ford Flex and Lincoln MKT.

Ford’s move to stop production of the crossovers comes as the company is expanding its truck and utility lineup and shedding passenger cars, except for its iconic Mustang sports car.

“We will stop building the Ford Flex at the end of November. Lincoln MKT production ended earlier this month,” said Kelli Felker, manufacturing & labor communications manager at Ford.

The company employs about 4,100 hourly workers at the Oakville plant.

Negotiations between Unifor and Ford for a new collective agreement are scheduled to take place in 2020, the union said.

“Hopefully we get some kind of announcement that Ford is going to invest some new money into Oakville and at least there’s a light at the end of the tunnel,” said Dave Thomas, president of Unifor Local 707 in Oakville.