United Auto Workers Union & Ford: A Landmark Deal
After a grueling 41-day strike, the United Auto Workers union and Ford, its largest employer, have come to a tentative agreement. This agreement ensures that 16,600 striking employees will return to work soon and guarantees them a pay increase of 25% until 2028.
Nevertheless there is still labor discord at the remaining two unionized automobile manufacturers, in the United States; General Motors and Stellantis. The union members of the United Auto Workers at these companies totaling around 29,000 individuals will continue their strike until they achieve an agreement, to Fords.
Earlier this week, the United Auto Workers union escalated its strike actions. They decided to extend their strike to the factory, in Sterling Heights, Michigan which happens to be one of Stellantis most locations. After that they also expanded their strike to a plant, in Arlington, Texas right after GM shared news of earnings that exceeded expectations.
UAW President Shawn Fain when announcing the agreement emphasized the strategic actions taken throughout the week. He mentioned, “Our Stand Up strike was a success. We made an impact, on the companies. Ford was well aware of the consequences if we didn’t reach an agreement. It was like a game of chess. We had them cornered.”
A Week of Dramatic Developments
Ford responded positively. Expressed their contentment with the deal. They emphasized their pride in being responsible for assembling the number of vehicles in America and their commitment, to restoring production capacity at their plants.
However, this agreement will only be activated once the 57,000 United Auto Workers union members at Ford give their approval. The process of ratification might take than a week. However the 16,600 workers who were, on strike will return to work before the entire ratification process is completed.
Chuck Browning, UAW Vice President who led negotiations with Ford stated, “We are going back to work at Ford to put pressure on Stellantis and GM. They definitely don’t want to see Ford returning to capacity while they lag behind.”
Under the agreement UAW members can expect a 11% increase in pay followed by additional increases totaling 25% over the next four and a half years. Furthermore the contract now includes a cost of living adjustment that safeguards, against inflation.
US President Joe Biden lauded both the United Auto Workers union and Ford for their efforts in reaching this agreement. He mentioned, “This preliminary agreement offers a salary increase, for workers… The ultimate decision on this contract will come from the UAW members themselves.”
The ongoing strike, initiated on September 15 holds significance as it marks the instance of the United Auto Workers union simultaneously striking against all three major unionized automakers in the country. Presently around 16,600 UAW members are participating in the strike, across three Ford assembly plants, including the Kentucky Truck Plant located in Louisville.
