Ford Pays Dearly for Labor Peace With the UAW
livemint.comPresident Biden praised what he called the “historic tentative agreement" that the United Auto Workers and Ford struck late Wednesday as a testament to collective bargaining. Perhaps, but the real test will be whether Ford can stay competitive, especially amid the government-forced electric-vehicle transition. UAW President Shawn Fain’s strategy of staging strikes at select plants operated by all three Detroit auto makers appears to be paying off.
The union was threatening to call off workers at a factory that builds Ford’s highly profitable F-150 pickup when the auto maker agreed to a generous deal that ends the nearly six-week walkout. Ford agreed to raise wages 25% over four years and restore cost-of-living adjustments—a major improvement on its initial 15% offer. Ford’s top pay rate will increase by more than 30% to more than $40 an hour.
The starting wage will rise 68% to more than $28 an hour, which is more than a typical college grad makes straight out of school. Ford’s initial offer eliminated lower wages for newer hires—implemented when the Big Three auto makers verged on collapse in 2007—but the union also won a faster progression to top pay. The union says members will receive more in general wage increases over the next four-and-a-half years than they have over the last 22 years combined.
Read more on livemint.com
