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The United Auto Workers Union Reaches Tentative Contract Agreement with Ford

In a significant development, the United Auto Workers (UAW) union has announced a tentative contract agreement with Ford, which could potentially mark a breakthrough in the ongoing strikes against Detroit automakers. The four-year deal, still subject to approval by the company’s 57,000 union members, has the potential to put an end to the series of strikes at targeted factories operated by Ford, General Motors, and Stellantis.

A Potential Turning Point in the Strike

The UAW believes that the Ford deal can serve as a model for reaching agreements with the other two automakers, where workers are still on strike. By calling on all Ford workers to return to their jobs, the UAW aims to exert pressure on GM and Stellantis to engage in negotiations. The union plans to announce further details on how this will be accomplished in due course.

This is a significant achievement for the UAW, as President Shawn Fain shared in a video address to members, stating, “We told Ford to pony up, and they did. We won things no one thought possible.” Fain further highlighted that Ford has offered 50% more money than they did before the strike commenced on September 15.

Wage Increases and Benefits for Workers

Under the proposed agreement, workers will receive a 25% general wage increase, along with cost of living raises that would push the pay increase to over 30%, amounting to over $40 per hour for top-scale assembly plant workers. This surpasses the pay increase offers made earlier by Ford, Stellantis, and General Motors, with Ford initially offering only 9% when the negotiations started.

Additionally, assembly workers will receive an 11% increase upon ratification, which is nearly equivalent to all the wage increases accumulated since 2007. UAW Vice President Chuck Browning, the chief negotiator with Ford, emphasized that temporary workers would experience more significant wage increases, surpassing their collective wage gains from the past 22 years combined. Retirees would also receive annual bonuses, marking a substantial victory for workers.

Implications for GM, Stellantis, and the Industry

In the past, UAW agreements with one automaker have typically led to matching settlements with other companies. General Motors expressed in a statement that it is “working constructively” with the union to reach an agreement promptly, while Stellantis affirmed its commitment to reaching a deal that prioritizes getting employees back to work swiftly.

The UAW’s achievement in this agreement has opened new possibilities for the union. Browning mentioned that, for the first time, they have secured the right to strike over company plans to close factories. This newfound power ensures that companies can no longer close plants without consequences, preventing further damage to communities. Browning stated, “Together we have made history.”

Return to Work and Future Developments

The UAW’s national leadership council will travel to Detroit on Sunday for a presentation on the agreement. A vote will then take place to determine whether to recommend the deal to members. Subsequently, the union will provide a comprehensive explanation of the agreement to its members through a Facebook Live video appearance and regional meetings.

The end of the strike brought relief and excitement for many workers. Keith Jurgelewicz, a Ford worker, expressed his emotions, saying, “It’s an emotional time for me. I’m emotional. But just super excited that this is over with. I just can’t wait to get back to work and just get on with my life.” Jurgelewicz expressed hope that GM and Stellantis can also conclude their agreements, proclaiming it as a historic day.

President Joe Biden, a self-proclaimed union-friendly president, commended the settlement as a testament to the power of employers and employees coming together to resolve differences at the bargaining table. Biden emphasized the vital role of unions in building the middle class and praised the agreement for helping workers secure a family-sustaining income.

Future of Ford and the Auto Industry

Ford expressed its satisfaction with the newly reached contract and highlighted its intent to focus on restarting operations at the Kentucky Truck Plant and the Chicago Assembly Plant. Approximately 20,000 workers will return to their jobs, enabling the company to ship its full lineup of vehicles to customers. While Ford did not disclose the cost of the agreement, it reiterated its commitment to investing in new vehicles and transitioning to electric vehicles. All three automakers emphasize the importance of managing labor costs to support their future investment plans and avoid potential price increases.

Overall, the agreement between the UAW and Ford is viewed as a decisive step toward resolving the strikes and improving conditions for workers. It signifies a turning point in prioritizing the working class and heralds a positive shift in the auto industry.

Associated Press Writer Mike Householder contributed from Wayne, Michigan.

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