Ford, UAW Agree on New Contract

Ford(F Quote) and the United Auto Workers reached a tentative agreement on a new labor contract, both sides said Saturday.

The four-year contract, which UAW members must still ratify, would establish a union-run health care trust for retirees, allowing the Dearborn, Mich.-based company to eventually free itself from costly long-term health care obligations. In that way, it's similar to deals recently ratified by workers at fellow Big-Three automakers Chrysler and General Motors(GM Quote).

Negotiators reached the agreement at 3:20 a.m. EDT Saturday. Aside from Ford’s mention of the health care trust, neither side disclosed details of the contract in media statements.

The contract covers 54,000 union workers at Ford in the U.S.

Ford shares gained 45 cents Friday to close at $8.95.