UAW President: Tentative Agreement with Ford Reached — 'GM And Stellantis Up Next'

United Auto Workers (UAW) President Shawn Fain said on Wednesday that the union has reached a tentative agreement with Detroit-based automaker Ford Motor Co F. If ratified, the agreement would mark an end to the strike that is well into its 6th week now at Ford.

What Happened: In a Facebook live posted on Wednesday evening, the union's vice president Chuck Browning said that the tentative agreement is the ‘most lucrative' offer received since Walter Reuther was union president between 1946 and 1970.

"GM and Stellantis up next," President Shawn Fain said.

Ford confirmed the agreement in a statement and said that it is focused on restarting Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant where nearly 20,000 workers are presently on strike. The company is expected to report its third quarter earnings tomorrow after market close at 5:00 p.m. ET.

Details Of The Agreement: Vice President Browning termed the contract ‘historic' and ‘life changing' and said that it puts four times more money for the workers as compared to the 2019 agreement.

The agreement provides for 25% general wage increase over the course of the agreement. Top wage for workers will cross $40 an hour, a jump of about 30%.  Further, Ford workers will receive an immediate 11% wage increase on ratification of the agreement, the union said.

The agreement also complies with other demands of the union including reinstatement of Cost-of-Living Allowances and a three-year Wage Progression while simultaneously striking down wage tiers in the union.
As the ratification process of the tentative agreement takes its course, Ford workers will now return to work.

Why It Matters: The union initiated the simultaneous strike against the Detroit Big Three automakers on Sept. 15, seeking improved compensation and other benefits. More than a month later, Stellantis and GM are yet to deliver a contract the UAW leadership is pleased with.

Earlier this week, on Tuesday, the union announced that employees at GM's Arlington Assembly Plant in Texas had joined the strike, just hours after the automaker reported estimate-beating quarterly results.

Photo by Jon Rehg on Shutterstock

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