United Auto Workers (UAW) union leaders in Detroit have approved a tentative agreement with Ford Motor. The deal includes $8.1 billion in new plant investments, $5,000 ratification bonuses, and other economic gains such as compounded wage increases and improved profit-sharing payments.
The 4 ½-year tentative agreement was announced last week and will now be presented to 57,000 UAW-Ford members for regional meetings and voting. The UAW did not provide a specific timeline for the voting process.
UAW President Shawn Fain and UAW Vice President Chuck Browning expressed their confidence in the agreement, stating that it “breaks records” and has the potential to “change lives.” They emphasized that the ultimate decision lies with the UAW members.
The details of the agreement were outlined by UAW leaders last week, but the summary and over 800-page contract were released on Sunday after local union leaders approved it.
The UAW had launched targeted strikes against Ford, General Motors (GM), and Stellantis after failing to reach agreements ahead of a September deadline. While a tentative deal has been reached with Stellantis, negotiations with GM are still ongoing.
Some of the major investments promised in the deal include $2.1 billion for Ohio Assembly, $1.2 billion for a new electric vehicle (EV) at Louisville Assembly, $1 billion in Kansas City Assembly, and $900 million for F-150 production and a new electric truck.
The agreement also includes a series of wage increases, with a total raise of 25%. The raises will be implemented in stages, with an 11% increase upon ratification and subsequent increments over the next three years. The contract also includes benefits such as cost-of-living adjustments.
UAW President Fain stated that the union plans to use this deal as a platform to organize more effectively and expand its reach beyond the “Big Three” Detroit automakers. He expressed the goal of organizing with other companies in the future and encouraged other unions to align their bargaining timelines.
The UAW also secured jobs and easier organizing rights at upcoming battery plants and EV assembly plants, including a battery plant being constructed by Ford in Michigan.
One notable change in the agreement is its length, extending it from four years to four and a half years to align with Workers’ Day on May 1. The deal also includes additional benefits for members, such as a three-year progression to top pay rates, immediate conversion of temporary workers to permanent positions, enhanced profit-sharing, and increased 401(k) contributions.
While the agreement is a significant achievement, it falls short of some of the UAW’s original demands, such as a 40% pay increase, a shorter workweek, and traditional pensions for all workers.
Overall, the UAW is optimistic about the deal and hopes to leverage it to strengthen its position in future negotiations and organizing efforts.
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