On Sunday, local United Auto Workers (UAW) union leaders approved a tentative agreement with Ford Motor, featuring substantial commitments from the company. The agreement encompasses $8.1 billion in new investments in various plants, $5,000 ratification bonuses, and several economic improvements, including 25% compounded wage increases and enhanced profit-sharing payments.
This 4 ½-year tentative agreement, which was initially disclosed last Wednesday, will now be presented to 57,000 UAW-Ford members for regional informational sessions and subsequent voting. The exact timeline for the voting process, which typically takes a couple of weeks, has not been officially released.
UAW President Shawn Fain and UAW Vice President Chuck Browning emphasized in a joint statement included in a summary of the deal, “We send this contract to you because we know it breaks records. We know it will change lives. But what happens next is up to you all.”
The UAW had previously outlined some aspects of the tentative agreement last week, but they officially released the summary and the more than 800-page contract on Sunday following approval by local union leaders for member voting.
The tentative agreement was reached after the union had initiated targeted strikes against Ford, General Motors, and Stellantis (the parent company of Chrysler) when negotiations failed to yield agreements by the September 14 deadline.
While the UAW announced a tentative deal with Stellantis on Saturday, they are yet to finalize an agreement with GM, despite being close to a deal last week.
Notable investments included in the agreement encompass $2.1 billion for Ohio Assembly for current products and a new electric van; $1.2 billion for a new electric vehicle at Louisville Assembly in Kentucky, focusing on pickup and SUV production, including hybrid versions of the Ford Expedition and Lincoln Navigator; $1 billion allocated to Kansas City Assembly; and $900 million designated for F-150 production and a new electric truck.
The 25% raises includes an 11% increase upon ratification, followed by 3% increases the next three years and then a 5% increase in October 2027. The raises and benefits such as expectations of $8,800 for cost-of-living adjustments cumulatively raise the top wage to more than $40 an hour, including an increase of 68% for starting wages to over $28 an hour. local United Auto Workers
Fain said Sunday the UAW plans to use this record deal, as well as others with different companies, as a way to assist its embattled organizing efforts, including auto companies outside of the “Big Three” Detroit automakers.
“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” Fain said Sunday during an online broadcast. “When we return to the bargaining table in 2028, it won’t just be with the ‘Big Three,’ but with the big five or big six.”