Roughly a month and a half after going on strike, the UAW has reached a tentative agreement with Ford.
Ford CEO Jim Farley confirmed the news in a brief statement, which said “We are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations. Ford is proud to assemble the most vehicles in America and employ the most hourly autoworkers.”
The executive went on to say the agreement is subject to ratification, but they’re focused on restarting production at Chicago Assembly, Michigan Assembly, and the Kentucky Truck Plant. As part of this effort, they’re calling 20,000 employees back to work.
More: Bill Ford Calls For UAW To End Strike, Union Threatens To Stop F-150 Production
UAW President Shawn Fain said, “This agreement sets us on a new path to make things right at Ford, at the Big Three, and across the auto industry. Together, we are turning the tide for the working class in this country.”
While specifics are hazy at the moment, the union said the agreement “grants 25% in base wage increases through April 2028, and will cumulatively raise the top wage by over 30% to more than $40 (£33.08 / €37.89) an hour.” The UAW went on to say the starting wage will climb 68% to more than $28 (£23.15 / €26.53) an hour.
Other highlights of the deal include cost-of-living allowances, a three-year wage progression system, and “killing divisive wage tiers.” The union also said Ford employees will see retirement benefits regardless of whether they have pensions or a 401(k) plan.
Furthermore, the union secured the “historic right to strike over plant closures.” That’s a first for them and it sets up a possible showdown in the future.
While that’s just a brief glimpse at the agreement, the UAW National-Ford Council will travel to Detroit and vote on whether or not to send the deal to membership for ratification. This decision is slated to occur on October 29 and, if approved, union members would then cast their vote.
