A tentative agreement was announced between Ford and UAW to end the 6-week-long labor strike. The UAW membership is expected to vote to ratify the deal in the coming days.
Ford, UAW strike tentative deal
The agreement was announced on the UAW’s Facebook page through a video with UAW President Shawn Fain and UAW Vice President Chuck Browning.
Ford also issued a press release confirming the agreement.
While the exact details of the agreement are not public, there are several highlights revealed during the UAW’s video presentation.
For starters, the UAW says the value of gains in the tentative agreement represent four times more value than the 2019 collective bargaining agreement, the last contract.
What we know
UAW workers will also see a 25% increase in wages. Putting this in perspective, wages grew 23% in total from 2001-2022.
The UAW also said it will receive Cost of Living Adjustments at a rate similar to prior to the 2009 collective bargaining agreement. They also ended wage tiers and now have a 3-year wage progression.
Also, some workers at the Sterling Axle and Rawsonville facilities will see an 85% increase in wages immediately.
Temporary workers will also get a 150% raise through the 2023 agreement.
Finally, current retirees and pensioners will see economic benefits.
Besides the money, the UAW says it now has the power to individually strike plant closures.
The UAW also said all 20,000 members on strike will return to work while the ratification process plays out. This, according to UAW President Fain, will put pressure on General Motors and Stellantis to offer similar “record contracts” Ford offered.
The bottom line
Thank goodness the strike seems to be nearing an end. With Ford and the UAW coming to a tentative agreement, we expect GM and Stellantis to move swiftly to offer similar deals. This means thousands of workers will go back to work, and our economy won’t be dragged down by these disruptions. Consumers, dealers and communities now have more economic certainty.
