Ford, UAW reach tentative labor deal over a record pay raise to end the UAW strike. The Ford, UAW reach tentative labor deal, which needs approval by union leaders and members, would be the first settlement of UAW strike by 45,000 workers against Ford, General Motors and Chrysler-parent Stellantis that began September 15.
Automaker Ford, UAW reach tentative labor deal after a six-week strike, UAW President Shawn Fain said on Wednesday. This will be a 4-1/2-year UAW contract that would provide a record pay boost.
UAW and Ford reach tentative agreement
“We told Ford to pony up and they did,” Fain said in a video post on Facebook, adding that the UAW strike at Ford “has delivered”. This Fain said on the UAW and Ford reach tentative agreement.
The four-year Ford, UAW reach tentative labor deal, which still has to be approved by 57,000 union members at the company, could bring a close to the UAW’s series of strikes at targeted factories run by Ford, General Motors and Jeep maker Stellantis.
Fain said the UAW deal is a historic agreement with Ford, including a 25% wage increase over the life of the contract. Ford workers will receive an immediate 11% wage hike. This would include compounding and cost of living, worker pay will rise about 33% to over $40 an hour over the life of the contract.
UAW strike at all Ford plants
The UAW strike ratcheted up pressure on the companies at each of Ford’s most profitable plant, GM’s Arlington, Texas assembly plant, Ford’s Kentucky heavy-duty pickup factory and Stellantis’ Ram pickup plant in Sterling Heights, Michigan. Total economic losses from the UAW strike have reached $9.3 billon, the Anderson Economic Group said earlier this week.
What UAW won from Ford?
In addition to the general wage hike the UAW contract as per Fain will also have the lowest paid temporary workers raise of more than 150% over the contract term and employees would reach top pay after three years. The union also won the right to strike Ford over future plant closures, he said.
Fain was asking Ford workers to return to work to put pressure on GM and Stellantis to reach a UAW deal.
Previous UAW strikes?
Previously Ford, Stellantis and General Motors had all offered 23% pay increases. When the talks started Ford offered 9%.
Assembly workers will get 11% upon ratification, almost equal to all of the wage increases workers have seen since 2007, Browning said.
Typically, during past auto strikes, a UAW deal with one automaker has led to the other companies matching it with their own settlements.
GM said in a statement it is “working constructively” with the union to reach an agreement as soon as possible. Stellantis also said it’s committed to reaching a deal “that gets everyone back to work as soon as possible.”
Ford happy with the UAW deal
Ford said it is pleased to have reached the deal and said it would focus on restarting the huge Kentucky Truck Plant in Louisville, as well as the Chicago Assembly Plant. The Louisville plant alone employs 8,700 workers and makes high profit heavy duty F-Series pickup trucks and big truck-based SUVs.
In all, 20,000 workers will be coming back on the job and shipping the company’s full lineup of vehicles to customers, Ford said.
Ford’s statement made no mention of the cost of the contract. Company executives said last week they were at the limit of what they could pay while still being able to invest in new vehicles and the transition from internal combustion to electric vehicles. All three companies have said they don’t want to be saddled with high labor costs that could limit their ability to invest in future vehicles and potentially force them to raise prices.
“This agreement sets us on a new path to make things right at Ford, at the Big Three, and across the auto industry. Together, we are turning the tide for the working class in this country,” Fain said.
