A preliminary contract deal between the United Auto Workers union and Ford was announced on Wednesday, potentially marking a significant advancement toward the resolution of the almost six-week-old strikes against Detroit manufacturers.
According to Chuck Browning, vice president of the UAW, the agreement includes a general salary rise of 25% during the four-year contract – which is 2% more than Ford had previously offered. According to Browning, the agreement included an immediate 11% salary raise for all union members, with top earners also set to get roughly $40 per hour.
Under the draft agreement, temporary workers would also get salary rises of more than 150% over the course of the deal, and the union would have the power to strike over factory closures. Additionally, the provisional compromise enhances retirement benefits for current employees with 401(k) plans, pensions, and retirees.
The four-year agreement, which still needs to be ratified by Ford’s 57,000 union members, might serve as a model for settlements with Ford, General Motors, and Stellantis. In previous auto strikes, a UAW agreement with one carmaker has usually resulted in the other firms matching the settlement with their own payments.
The union urged all Ford employees to report back to work, stating that this will increase pressure on GM and Stellantis to engage in collective bargaining.
“I applaud the UAW and Ford for coming together after a hard fought, good faith negotiation and reaching a historic tentative agreement tonight,” President Joe Biden said in a statement. “This tentative agreement is a testament to the power of employers and employees coming together to work out their differences at the bargaining table in a manner that helps businesses succeed while helping workers secure pay and benefits they can raise a family on and retire with dignity and respect.”
The proposed agreement was reached around two weeks after 8,700 union workers at Ford’s largest Kentucky plant went on strike. Ford has so fire fired 3,167 workers as a result of the walkout, whereas GM and Stellantis let go 2,350 and 1,520 workers respectively.
