This week, Ford and United Autoworkers (UAW) announced a tentative contract agreement as strikes have occurred over a six-week period.
The new four-year contract includes a 25% general wage increase with cost of living raises that make for an increase of over 30% for workers over a four-year period. Assembly workers will receive an 11% increase when the contract takes effect. The contract also includes temporary employees receiving over 150% in raises, as well as significant increases for retirees.
General Motors and Jeep maker Stellantis are still in negotiations with UAW, but it is expected that the Ford agreement will lead to the other companies reaching deals as well.
The Ford agreement is expected to be submitted to a UAW council on Sunday, and if approved, the contract will be brought to the 57,000 union workers for their approval.
Ford issued the following statement when the agreement was announced:
“We are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations. 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 Ford employees back to work and shipping our full lineup to our customers again. The agreement is subject to ratification by Ford’s UAW-represented employees. Consistent with the ratification process, the UAW will share details with its membership.”