UAW strike: Ford & union agree record pay rise in tentative agreement

Ford & union agree to record pay rise in the tentative agreement.
The tentative contract still requires approval from union leaders.

The union secured the right to strike in response to potential Ford plant closures.

Ford and the United Auto Workers (UAW) union have reached a preliminary deal, featuring a record-breaking pay increase, to bring an end to an almost six-week strike.

This agreement represents the first resolution of strikes involving employees at Ford, General Motors (GM), and Stellantis, the parent company of Chrysler.

The tentative contract still requires approval from union leaders and members. If Ford workers give their nod to the new agreement, it is expected to set the standard for negotiations at GM and Stellantis.

UAW President Shawn Fain expressed, “We told Ford to pony up, and they did.”

He disclosed that the agreement entails a 25% wage hike over the four-and-a-half-year duration of the contract, commencing with an initial 11% increase. The lowest-paid temporary workers would experience pay raises of over 150% during this period.

Additionally, the union secured the right to strike in response to potential Ford plant closures.

In response, Ford’s CEO and President, Jim Farley, stated, “We are focused on restarting Kentucky Truck Plant, Michigan Assembly Plant, and Chicago Assembly Plant, calling 20,000 Ford employees back to work and shipping our full line-up to our customers again.”

U.S. President Joe Biden applauded the preliminary deal, stating, “[It] provides a record raise to auto workers who have sacrificed so much to ensure our iconic Big Three companies can still lead the world in quality and innovation.”

The strike, initiated on September 15, represents the first instance in the UAW’s 88-year history of simultaneous labor action against all three major automakers.

The union’s initial demands included a roughly 40% pay increase over four years and an end to practices that result in lower wages and reduced benefits for newer workers.

The companies contended that these requests would impede their long-term investment capabilities and offered a pay increase of approximately 20% along with some additional concessions in response.

The UAW exerted pressure on these automotive giants by staging strikes at their most lucrative facilities.

Workers at numerous sites, including GM’s Arlington, Texas assembly plant, Ford’s Kentucky heavy-duty pickup factory, and Stellantis’ Ram pickup plant in Sterling Heights, Michigan, walked out in support of their demands.

This announcement was made ahead of Ford’s quarterly financial results disclosure scheduled for Thursday. Notably, strikes are still ongoing at GM and Stellantis.

GM and Stellantis stated that they are actively working toward similar agreements with the union following the news of the tentative agreement between Ford and the UAW.

The Anderson Economic Group estimated that the cumulative economic losses resulting from the strike had reached $9.3 billion an economic research firm.

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UAW strike: Ford & union agree record pay rise in tentative agreement

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