UAW reaches agreement with Ford over local Kentucky plant contract

(Reuters) -The United Auto Workers (UAW) said on Wednesday it had reached an agreement with Ford Motor (NYSE:) Co over a local contract covering workers at the automaker’s Kentucky truck plant, averting a strike.

The union said last week its members at the plant, which has 9,251 employees and builds Ford’s most profitable F-series trucks among other vehicles, would go on strike this week if local contract issues were not resolved.

The new contract addresses issues related to skilled trades and health and safety of workers, among others.

It is separate from the agreements the Detroit Three automakers – Ford, General Motors (NYSE:) and Stellantis (NYSE:) – signed with the United Auto Workers (UAW) last year to deliver record wage hikes to about 150,000 members.

In addition to national contracts, the union also negotiates local agreements around plant-specific issues at each facility.

Ford confirmed the new contract and said it was “pleased to have reached a tentative agreement on a new labor contract with UAW Local 862 covering Kentucky Truck Plant and 8,700 valued UAW-Ford employees.”

The agreement comes on the heels of Ford trying to pivot from its EV shift and ramp up production of its higher-margin hybrid and gas-powered models.

The Kentucky plant generates about $25 billion in annual revenue, accounting for about a sixth of the Detroit automaker’s global automotive revenue.