The UAW and Ford Motor Company have reached a tentative agreement that will end the automaker’s almost six-week strike, the union announced Wednesday night.
- IMPORTANT NOTES
- The UAW and Ford have reached a tentative agreement that could end the automaker’s almost six-week strike, the union announced Wednesday night.
- The proposed agreement, first reported by CNBC, includes a 25% wage rise over the course of the accord.
- Tuesday and Wednesday saw heated talks between the automaker and the union in an attempt to reach a record settlement.
The draft agreement, originally reported , includes 25% pay increases throughout the life of the pact, raising the highest income to more than $40 an hour in total, including a 68% rise in starting earnings to more than $28 an hour. “Like everything else we’ve done during this stand-up’ strike, this is a strategic move to get the best deal possible,” said Browning, who led Ford negotiations. “We’re returning to Ford to keep the pressure on Stellantis and GM.” They don’t want Ford to return to full capacity while they fumble around and fall behind.”
It also restores cost-of-living increases, a three-year road to top salaries, and the right to strike over plant closures. among other greatly improved advantages. ′′We told Ford to come through, and they did. “We accomplished things that no one thought possible,” UAW President Shawn Fain said in a video broadcast online Wednesday night. He said that the value of Ford’s offer had increased by 50% since the targeted, or “stand-up,” strikes began on September 15.
The tentative agreement must still be approved by local UAW leaders and accepted by a simple majority of Ford’s 57,000 unionized workers. To explore the terms of the agreement, the union will organize informational sessions as well as an online briefing, which will be put online with summaries. Autoworkers currently on strike with Ford will return to work while the union’s approval and voting process is completed, according to UAW Vice President Chuck Browning.
In a statement, Ford stated that it was “pleased to have reached a tentative agreement.” The corporation is now concentrating on resuming production at the Kentucky Truck Plant, the Michigan Assembly Plant, and the Chicago Assembly Plant, where a union-led walkout of around 16,600 workers occurred.
Ford shares were up almost 2% in after-hours trade. The stock finished at $11.54 per share on Wednesday, up 1.3%. This year, the stock is down less than 1%. The union said gains in the deal are valued at more than four times the gains from the 2019 contract and provide more in base wage increases than Ford workers have received in the past 22 years.
Sources told CNBC that Ford, which is due to disclose third-quarter earnings after the markets close Thursday, and the union engaged in rigorous bargaining Tuesday and Wednesday to seal the record contract. Since failing to agree new contracts covering 146,000 autoworkers by a September 14 deadline, the UAW and Ford, as well as its crosstown rivals General Motors and Stellantis, have been locked in negotiations centered on the economics of the deals.
The union began discussions with all three automakers at the same time, a departure from former practice in which UAW leaders would bargain with each manufacturer individually, choose a lead firm to focus efforts on, and then base the remaining accords on the leading tentative agreement.GM and Stellantis both issued statements Wednesday night pledging to continue working with the UAW union to reach tentative agreements “as soon as possible.”
FAQs About UAW strike
What is UAW?
The International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (UAW) is one of North America’s largest and most diverse unions, with members from virtually every industry.
Why did UAW strike?
The wage disparity between new and elderly workers is another major factor for the strikes. Workers who have been with a company for a long enough time can now earn the same salary as their colleagues hired before 2007. However, the union wants that deadline to be shortened.
How many UAW are on strike?
The extra factories exacerbate a labor conflict that is now in its sixth week and has approximately 46,000 union workers out of work. And language from both sides demonstrates that they remain far apart on what they consider to be fair wage and benefit packages, with the employer and the union sticking to their respective viewpoints.
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