The automaker Ford and the American auto union UAW announced Wednesday evening that they had reached a provisional agreement to end a strike that lasted more than 40 days. This agreement, which has yet to be ratified by workers, includes a 25% increase in base salary and cost of living allowances.
After more than a month of strikes at Ford, General Motors and Stellantis, the UAW union and Ford have finally found common ground. This agreement was hailed as “historic” by President Joe Biden himself.
The agreement, which remains to be validated by workers in an upcoming vote, provides for a 25% increase in base salary and cost of living allowances, according to the UAW. Ford said he was “satisfied” with this outcome. UAW President Shawn Fain said the deal would help turn things around at Ford and throughout the auto industry.
This strike was the first to simultaneously target the three main American manufacturers. It mobilized nearly 45,000 UAW employees out of a total of 146,000 members. Now that a tentative agreement has been reached at Ford, workers will return to their jobs in an effort to put pressure on General Motors and Stellantis. This strategic decision aims to obtain the best possible conditions for all workers in the automotive industry.
Regarding salary increases, the agreement provides for a 25% increase in base salary until April 2028. This will result in an increase of more than 30% in the highest salary, or more than 40 dollars of per hour, and a 68% increase in starting pay, to more than $28 per hour. Ford’s lowest-paid workers will also get a raise of more than 150% over the life of the deal.
This agreement also makes it possible to eliminate salary scales which penalized young employees, to improve the pensions of current retirees and to guarantee the right to strike in the event of factory closure.
In conclusion, this provisional agreement ends a strike of more than 40 days at Ford and marks significant progress for workers in the American auto industry. By guaranteeing substantial wage increases and improvements in working conditions, it demonstrates the importance of worker mobilization and the ability of unions to negotiate favorable agreements.