The United Auto Workers union reached a tentative deal with one of the Detroit Three automakers, Ford Motors, yesterday. The deal includes a pay bump over four years and cost of living adjustments, among other things.
UAW President Shawn Fain boasts that “Ford put 50% more money on the table than it did before the strike started on September 15.”
The labor contract is considered a pivotal moment in the six weeks of the UAW strike. General Motors and Stellantis are expected to follow.
If ratified, the contract would be the biggest win for unionized auto workers in decades and would provide
- A 25% general pay increase over four years of the contract, making the top wage over $40 per hour.
- Cost of living benefits, annual bonuses for retirees, and improved pension and 401(k) plans for workers.
- First of its kind, right to strike plant closures.
Not in it
The deal does not include a 32-hour workweek and full pension plans requested by the union.
Ford CEO Jim Farley is pleased with the tentative deal and has called the 20,000 employees back to work.
What happens next
The other two automakers, Stellantis and GM, will intensify negotiations with UAW, which increased pressure when it struck Stellantis’s most profitable factory in the country and struck a General Motors assembly plant in Texas that builds its profitable full-size SUVs.