The United Auto Workers union announced on Wednesday that it has reached a tentative contract agreement with Ford, marking a potential breakthrough in the ongoing strikes against Detroit automakers. This four-year deal, still pending approval from the union’s 57,000 members, could be the resolution to the series of strikes at targeted factories operated by Ford, General Motors, and Stellantis. The agreement with Ford may serve as a template for negotiating similar agreements with the other two automakers currently facing strikes. The UAW is urging all Ford workers to return to their jobs, hoping that this will put pressure on GM and Stellantis to come to the bargaining table. Details on how this will be achieved will be revealed later.
UAW President Shawn Fain expressed satisfaction with the agreement in a video address to members, stating that Ford exceeded expectations by increasing their monetary offer by 50% since the strike commenced on September 15. According to UAW Vice President Chuck Browning, the contract includes a 25% general wage increase, along with cost of living raises, resulting in a pay increase of over 30% for top-scale assembly plant workers, raising their hourly wage to over $40 by the end of the contract.
Previously, Ford, Stellantis, and General Motors had offered pay increases of 23%, with Ford initially offering only 9%. Browning mentioned that assembly workers would receive an 11% increase upon ratification, equivalent to all the wage increases they have received since 2007. Historically, one automaker’s deal with the UAW has influenced others to match it in their own settlements.
General Motors and Stellantis have both expressed their commitment to reaching agreements as soon as possible to end the strikes. Browning emphasized that temporary workers will receive wage increases exceeding what they have accrued over the past 22 years combined, and retirees will be eligible for annual bonuses. Browning hailed the agreement as the most lucrative deal per member since the era of President Walter Reuther.
The agreement will be presented to the National Leadership Council of the UAW, where it will be voted upon for recommendation to union members. The union will host a Facebook Live video appearance and regional meetings to explain the terms of the deal to its members. Ford is pleased with the agreement and intends to prioritize the reopening of its Kentucky Truck Plant and Chicago Assembly Plant. Ford’s statement did not disclose the cost of the contract, but last week, the company stated that it was approaching the limit of what it could pay while still investing in new vehicles and transitioning to electric vehicles.
President Joe Biden, known for his pro-union stance, commended the settlement as a success for employers and employees working together to find common ground. Workers with pensions will see increases, and those hired after 2007 with 401(k) plans will receive significant raises. For the first time, the union will be able to strike against company plans to close factories. Ford emphasized that this agreement signifies a turning point for the working class in the auto industry, setting a new path forward for Ford and other major automakers.
Associated Press Writer Mike Householder contributed to this report from Wayne, Michigan.
