Ford and the United Auto Workers (UAW) union have reached a tentative agreement after weeks of negotiations.
The deal, if finalized, will end the nearly six-week-long strike that has impacted the automotive industry. Notably, the agreement includes a remarkable pay increase, setting a new record in the industry, as per BBC News.
UAW Strike Halts After Reaching Agreement With Ford
LOUISVILLE, KENTUCKY - OCTOBER 14: Factory workers and UAW union members form a picket line outside the Ford Motor Co. Kentucky Truck Plant in the early morning hours on October 14, 2023 in Louisville, Kentucky. UAW leadership announced that the Kentucky Truck Plant would be the latest automotive manufacturing facility to join the nationwide strike.
A breakthrough has been achieved in the United Auto Workers (UAW) strike at Ford, as the union reached a tentative deal with the automaker that could end the 41-day strike involving 16,600 UAW members.
The UAW considers the Ford deal a potential blueprint for agreements with the other two automakers, where workers remain on strike. The union has called for all workers at Ford to return to their jobs, hoping that this will pressure GM and Stellantis to engage in negotiations. Detailed plans on proceeding with GM and Stellantis are expected to be announced soon.
UAW President Shawn Fain expressed satisfaction with the tentative agreement, noting that Ford had offered a 50% increase in financial terms compared to the beginning of the strike in September.
The proposed deal includes a 25% general wage increase and cost-of-living raises that could bring the total pay increase for top-scale assembly plant workers to over 30% by the end of the contract.
Upon ratification, assembly workers are set to receive an 11% pay increase, almost equivalent to the wage increases accumulated since 2007. Historically, deals between the UAW and one automaker have been a benchmark for subsequent agreements with other manufacturers.
General Motors expressed its commitment to working constructively with the UAW to reach an agreement swiftly, according to Yahoo News.
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UAW-Ford Tentative Deal Offers Strong Benefits
At the same time, Stellantis reiterated its dedication to finding a resolution that enables all workers to return to work promptly. Temporary workers will experience substantial wage increases, surpassing the cumulative increases they have seen over the past 22 years.
Retirees will also receive annual bonuses, and the deal includes significant provisions for workers with pensions and 401(k) plans. For the first time, the UAW secures the right to strike in response to company plans to close factories, providing a means to prevent plant closures without consequences.
The potential agreement was lauded as one of the most lucrative per member since Walter Reuther, a prominent UAW leader from 1946 to 1970. The union's national leadership council will meet to vote on recommending the agreement to members.
Regional meetings will be held to explain the deal's details to members, and a Facebook Live video appearance is planned for Sunday evening. President Joe Biden welcomed the settlement, praising the power of unions and employers working together to find common ground and support American workers.
However, the tentative deal still awaits ratification by Ford's union members, which could take more than a week. Nevertheless, the 16,600 UAW members on strike will return to work before ratification is complete in a strategic move to maintain pressure on GM and Stellantis.
The agreement includes an immediate 11% pay increase and gradual pay increases that could reach 25% over the next four-and-a-half years. Reintroducing a cost-of-living adjustment offers additional protection against rising prices, resulting in a potential pay increase of over 30% during the contract's term, CNN reported.
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