Ford, United Auto Workers (UAW) agree to 25% wage hike in tentative deal to end strike
Ford agreed to a record 25% hourly wage hike over the life of the contract, which exceeds four years. With cost-of-living allowances, the top wage rate is expected to increase by 33%. The top pay will be over $40 an hour, the union said.
UAW leadership will vote on the deal Oct. 29. It then must be ratified by Ford’s 57,000 US hourly workers, a process that could take weeks.
“We won things nobody thought was possible," said UAW President Shawn Fain Wednesday night in a video posted on X. “Since the strike began, Ford put 50% more on the table." In a statement on Wednesday, President Joe Biden highlighted “worker power" when congratulating Ford and the union on reaching a deal. Pay was one of the last issues to be ironed out during the talks.
The union had originally sought a 40% raise and 32-hour work week before reining in its demands. Ford earlier agreed to cost-of-living allowances, converting temp hires to full-time and expediting how long it takes workers to get to the top wage rate. Left out of Wednesday’s announcement were details on key issues including wages and benefits at battery plants and Fain’s initial demand for a 32-hour workweek.
Fain did not address whether the tentative agreement covers Ford’s four battery plants that are under construction or helps the UAW organize the new electric truck assembly plant the automaker is building in Tennessee. General Motors Co. and Stellantis NV are set to meet with the UAW on Thursday and the union hopes they will agree to the same terms, according to people familiar with the talks who weren’t authorized to speak publicly.
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