UAW and Ford reach tentative deal on new labor contract
Comodo Motors general manager Jordan Baker joins The Big Money Show to discuss the impact on auto dealers and car buyers from the ongoing UAW strike.
The United Auto Workers (UAW) union and Ford announced a tentative new labor deal with Ford aimed at bringing to an end the union’s strike which is currently in its sixth week.
The UAW initially sought pay raises for union autoworkers amounting to 40% over the course of a four-year contract, as well as a 32-hour work week and enhancements to benefits – while the automakers initially offered raises closer to 20% over a new contract with about 10% provided upon ratification of the new contract.
Ford and the UAW agreed to raise wages by 25% over the four-and-a-half-year contract with cost-of-living adjustments and an immediate 11% raise upon ratification. The agreement between Ford and the UAW would be tentative until it's ratified by the union's membership through a majority vote.
UNITED AUTO WORKERS STRIKE: COST TO US ECONOMY TOPS $9 BILLION
The United Auto Workers union and Ford have reportedly reached an agreement on a tentative labor contract amid an ongoing strike. (Emily Elconin/Bloomberg via Getty Images / Getty Images)
About 57,000 Ford workers are represented by the union, and about 16,600 of whom are currently on strike while 3,167 were temporarily laid off due to the strike.
«We are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations,» Ford CEO and President Jim Farley said in a statement. «Ford is proud to assemble the most vehicles in America and employ the most hourly autoworkers. We are focused on restarting Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant, calling 20,000
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