Over the past month and a half of so, the United Auto Workers (UAW) has engaged in a targeted strike against Ford, General Motors, and Stellantis, walking out of select plants owned and operated by the Detroit Big Three. Talks haven’t always gone terribly smoothly, with both sides trading public barbs multiple times, but in recent weeks, both seemed to be drawing a bit closer to finding common ground. Now, that’s precisely what has happened, as Ford and the UAW have reached a tentative agreement on a new four-and-a-half year contract.
The new deal includes, notably, a 25 percent pay increase over the length of the contract for UAW workers, which is a figure the union was reportedly targeting after initially seeking more than 40 percent. That includes an initial increase of 11 percent, and when adding in cost-of-living adjustments, would actually equate to around 33 percent in pay hikes.According to UAW President Shawn Fain, the deal will also see the lowest-paid temp workers receive raises of around 150 percent over the course of the contract, with top pay occurring after three years of employment, at least when/if it’s officially ratified by the union.
The UAW successfully negotiated an end to pay tiers as well – at least in select plants – and set the framework for GM and Stellantis to potentially follow in their respective contracts, too. “We told Ford to pony up and they did,” Fain said in a video posted to Facebook, adding that the strike “has delivered. We know it breaks records. We know it will change lives. But what happens next is up to you all.”
“We are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations,” Ford CEO 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 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.”
We’ll have more on this new agreement soon, so be sure and subscribe to Ford Authority for the latest Ford-UAW news, UAW news, and 24/7 Ford news coverage.
Comments
Now that they caved and gave away the farm, they’d better get moving on moving production out of America, like yesterday. Because shoppers just won’t tolerate even more big price hikes on top of those already, for an American brand. Talk about shooting yourself in the foot. Ugh!
These prices have risen 25% over the past 3 years while I got a less than 1% raise over time, so I don’t see why this is my fault.
Vehicles made in Mexico don’t cost less. All auto companies will use any excuse to squeeze the consumer. I know that my family and I will be blamed for rising costs even if it isn’t true.
Don’t anyone expect their Ford vehicles to be assembled 20% better or more precisely.
We build what they give us
A lot of quality concerns are engineering related. Yes, there are some messed up vehicles that get released. The bigger concern is using better quality designs.
Sounds like Ford is gonna have to stop wasting billions on failing EVs and start incentivizing customers and paying their employees.
So, your solution is to absorb fines for missing emission targets, reduce prices via retail incentives, and increase costs. What school of business did you attend?
No my solution is to price EVs at the cost to produce them, bring the ICE vehicle pricing back in line with reality via incentives, and offer people fuel efficient choices that they actually want, like hybrids, PHEVs, and regular ass cars.
A hybrid with the 2.3L in the f150 would make a very popular entry level engine and go a long way in fuel economy requirements.
If those efficiency targets are impossible to meet, it’s better to go out of business under the weight of unelected bureaucrats than to go out because you caved to them and nobody bought your product. Let the government force you out of business and see how long voters tolerate it.
Where do I apply for a job ??
Looks like Kia, Hundai, Nissan, Toyota will sell more vehicles because Ford Customers will no longer be able to buy Ford vehicles ! That is the reason that Studebaker went out of business due to Higher Labor Costs. Then they merged with Packard and drained all of their Reserves Savings ! Just to Pay Labor Increases !
Wrong. All of those companies have consistently raised MSRP over the years union or not. Ford already has the money to give us from their current profits. Do your homework before making such silly statements.
Hopefully I can get my newF450 that I have ordered.
👍🏻
if you have never worked in a auto plant you should try it on a hot summer day when it is over a 100, degrees in the plant,then you might have a different point of view, also when you are told you have to work overtime when you want to or not.
Try a glass plant or aluminum or steel plant, then you’ll know what hot is.
Everyone works in hot weather, roofers, framers, cement workers, asphalt pavers……
The f150 plant is downright pleasant. If the temps went up it’s because your HVAC union tards have t fixed the air handling. I wonder if their timeliness to service is like Comcast.
Future revenue pays your inflated contract going forward. When there are. O profits to offset your ridiculous gimme days, your plant will riff workers
Ford should just close all union factories and move to places where labor doesn’t have a grotesque perversion of their worth.
I hope we got some increase in pension pay. I’ve been retired 23 years and appreciate my retirement, but it won’t buy nearly as much as it did in 2000 when I was 60 years old. The cost of living under spend happy politicians is crushing folks on a fixed income. I’m glad my wife, who has always been a homemaker is a conservative spender. She will stretch a dollar as tight as a banjo string.