Ford workers to return to work as UAW turns to GM, Stellantis
By David Shepardson and Joseph White
(Reuters) — Ford (NYSE:F) autoworkers were set to head back to work after the United Auto Workers (UAW) union reached a tentative labor deal with the company late Wednesday.
Ford was the first of Detroit's Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers since mid-September. The UAW will now turn its attention to talks with General Motors (NYSE:GM) and Chrysler parent Stellantis (NYSE:STLA).
The agreement, which still must be ratified by union members, includes a 25% wage hike over the life of the 4-1/2-year contract and the elimination of lower-pay tiers for workers in certain parts operations at Ford.
The Ford contract stands as a significant victory for labor, one of many reached this year as workers have walked out or threatened strikes in various industries such as rail, entertainment, shipping and casinos.
«We still have to see some of the details but it is a major achievement for the union,» said Harley Shaiken, labor professor at University of California Berkeley.
The agreement reverses concessions the union agreed to in a series of contracts since 2007, when GM and the former Chrysler were skidding toward bankruptcy, and Ford was mortgaging assets to stay afloat.
The companies are collectively in a better position now, though they have all stated that excessive pay increases would hamstring their ability to compete in coming years against lower-cost manufacturers, including Tesla (NASDAQ:TSLA), the leading seller of electric vehicles.
The deal, which could help create a template for settlements with GM and Stellantis, amounts to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in, the UAW
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