Tentative Contract Agreement Between Ford and Autoworkers Could Signal End to Industry Strikes

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The United Auto Workers (UAW) union announced on Wednesday that it has successfully negotiated a provisional four-year contract with Ford Motor Company, signaling a potential end to the ongoing, nearly six-week-old strikes against Detroit-based automobile manufacturers.

Pending approval from Ford’s 57,000 union-affiliated employees, this contract could mark the conclusion of a series of labor strikes affecting Ford, General Motors, and Stellantis, the company behind Jeep. The United Auto Workers have urged Ford employees to return to work, stating that this will increase pressure on General Motors and Stellantis to engage in fruitful negotiations. Further details on this strategy are expected to be released in due course.

UAW President Shawn Fain, addressing members through a video message, highlighted that Ford’s latest offer was 50% more generous than their initial proposal prior to the strike commencing on September 15th.

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Chief Negotiator and UAW Vice President Chuck Browning detailed that the workers stand to gain a general wage increase of 25%, which, when coupled with adjustments for cost of living, will result in a total wage increase exceeding 30%. This would elevate the hourly wage of top-tier assembly workers to above $40 by the end of the contract term. Prior to this agreement, all three automotive companies—Ford, Stellantis, and General Motors—had proposed a 23% wage increase. Ford’s opening offer was a mere 9%.

Assembly workers are slated to receive an 11% increase upon ratification of the contract, a figure nearly equal to all the wage hikes workers have experienced since 2007, according to Browning.

Historically, a labor agreement reached with one major automaker has led to similar settlements with the other companies. Both General Motors and Stellantis issued statements confirming their commitment to achieving a swift resolution to their respective labor disputes.

Browning also stated that temporary workers will see wage increases surpassing the total increases they have received over the past 22 years. Furthermore, retirees will benefit from annual bonuses.

UAW leadership will convene in Detroit this Sunday to review the contract and decide whether to recommend its adoption to the membership. A Facebook Live event will also be organized Sunday evening to disseminate information about the agreement to union members.

Local leaders briefed workers at Ford’s Michigan Assembly Plant, with reactions ranging from relief to elation. Keith Jurgelewicz, one of the workers, expressed his relief and eagerness to return to work.

President Joe Biden, who had previously visited GM picketers near Detroit, lauded the tentative agreement, emphasizing the significance of collective bargaining in strengthening both businesses and the middle class.

Browning mentioned that the new contract also includes provisions for pension increases for retirees and substantial hikes for those with 401(k) plans hired post-2007. Moreover, for the first time, the union will have the right to strike should the company announce plans to shutter plants.

Ford stated it will now focus on resuming operations at key plants, including the Kentucky Truck Plant in Louisville, which employs 8,700 workers. Approximately 20,000 workers are expected to return to their jobs, thereby allowing Ford to resume full vehicle shipments to customers.

Ford’s statement, however, did not disclose the financial implications of the new contract. Company executives had previously indicated that there were limitations to what they could afford, particularly in the context of transitioning to electric vehicles.

“This new agreement lays the foundation for transformative changes at Ford, the Big Three, and throughout the automotive sector. We are collectively altering the trajectory for the working class in this country,” stated Fain.

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Contributions made by Mike Householder, Senior Correspondent from Wayne, Michigan.

Frequently Asked Questions (FAQs) about tentative contract with Ford

More about tentative contract with Ford

• United Auto Workers Official Statement
• Ford Motor Company Press Release
• General Motors’ Response to UAW Agreement
• Stellantis Statement on Ongoing Negotiations
• Historical Overview of UAW Strikes
• President Joe Biden’s Endorsement of the Agreement
• UAW Wage Increase Over the Years
• The Impact of Labor Costs on the Automotive Industry
• Transition to Electric Vehicles: Challenges and Opportunities for Ford
• United Auto Workers Union History and Leadership