The U.S. auto workers union has achieved a major breakthrough in its 41-day stoppage of Detroit’s “Big Three” car manufacturers, with a tentative agreement reached with Ford late Wednesday.
The deal, which must still be approved by rank-and-file workers in a vote, includes a 25% wage increase for hourly employees, the United Auto Workers union said. Other key elements include guaranteed cost-of-living adjustments; an elimination of different pay levels or “tiers” that disadvantage junior employees; and a right to strike over plant closures.
UAW President Shawn Fain hailed the agreement, saying “For months we’ve said that record profits mean record contracts. And UAW family, our Stand Up Strike has delivered.”
Ford also confirmed the agreement, saying “we are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations.”
U.S. President Joe Biden also praised the “historic accord,” saying “I applaud the UAW and Ford for coming together after a hard-fought, good-faith negotiation and reaching a historic tentative agreement tonight.”
The wage increase in the tentative agreement is lower than the 40% sought by Fain when the UAW launched the strike on September 15, but it is much higher than the 9% increase Ford initially proposed in August.
Fain said the agreement “sets us on a new path to make things right at Ford, at the Big Three, and across the auto industry,” and stressed that the final decision rests with members. He said the ratification process will include detailed online presentations and regional meetings.
The strike initially targeted three plants with just 12,700 workers walking out, but the union has gradually expanded the action in the ensuing weeks as it has sought a better deal. More than 45,000 workers were on strike prior to the Ford deal, and the UAW has about 146,000 auto workers in the United States.
In a twist, the UAW said Ford workers would return to their shifts to apply pressure to GM and Stellantis, both of which are currently offering 2% wage hikes. Fain has argued the companies need to sweeten the deal further in light of union concessions after bankruptcy reorganizations more than a decade ago.
The agreement with Ford is a major victory for the UAW and its members, and a testament to the power of collective action. The union has shown that it is willing to fight for its members and that it will not back down in the face of corporate greed.
The agreement is also a reminder of the importance of unions in the U.S. economy. Unions are essential for ensuring that workers are treated fairly and that their rights are respected. The UAW’s success in negotiating a better deal for its members is a reminder of the power of collective action and the importance of unions in the U.S. economy.
