United Auto Workers and Ford Motor Co. Reach Tentative Labor Agreement
The United Auto Workers (UAW) have reached a tentative labor agreement with Ford Motor Co., according to sources familiar with the negotiations. This breakthrough puts pressure on Ford’s chief rivals to also reach deals and put an end to the protracted strike that has resulted in billions of dollars in losses for the industry.
The tentative agreement at Ford includes a 25% increase in hourly wages and is currently awaiting approval from UAW leadership. The announcement is expected to be made around 8 p.m. local time in Detroit.
However, even if UAW leadership approves the deal, it still needs to be ratified by Ford’s 57,000 U.S. hourly workers. This process could take several weeks, and its outcome is uncertain due to raised expectations from UAW President Shawn Fain’s call for a transformational deal.
During the negotiations, pay was one of the final issues to be resolved. Initially, the union had demanded a 40% raise and a 32-hour work week but later adjusted its demands. Ford had already agreed to cost-of-living allowances, converting temporary hires into permanent positions, and expediting the progression to the top wage rate for workers.
