Well, folks, it looks like the six-week standoff between Ford Motor and the United Auto Workers (UAW) union has finally reached a resolution. Yep, the word on the street is that they’ve struck a tentative deal. The whispers first started on CNBC, but have since been confirmed by the union itself.
Now, this ain’t your average agreement. We’re talking about a hefty 25% pay increase over the course of the contract. That means top wages will be nudging above $40 an hour – not too shabby, right? If you’re just starting out, you’ll see your wages rocket by 68% to over $28 an hour.
But that’s not all. The deal also includes reinstatement of cost-of-living adjustments and a three-year path to those top wages. And if Ford decides to close a plant? Well, the workers have got the right to strike back.
UAW President Shawn Fain was pretty chuffed with the outcome. In fact, he said in an online video that they achieved things many thought were impossible and managed to bump up Ford’s offer by 50% compared with when they first went on strike back in mid-September.
But before we all get too excited, remember it’s just a tentative deal. It still needs the green light from local UAW leaders and then a thumbs up from a simple majority of Ford’s 57,000 union-represented workers.
In the meantime, those workers who were striking will head back to work while voting takes place. This is part of their strategy to keep pressure on Stellantis and GM according to UAW Vice President Chuck Browning who led the negotiations with Ford. Their plan? Get Ford back up and running at full capacity while their rivals are still negotiating.
Ford shares saw a little uptick in after-hours trading on the news of the agreement – around 2% – and ended Wednesday at $11.54 per share. The shares are down just a smidge this year, less than 1%.
The union was quick to point out that the gains in this deal are valued at more than four times the gains from the 2019 contract. It also provides more in base wage increases than Ford workers have seen in over two decades.
While all this has been going on, Ford and the union have been locked in intense bargaining sessions to finalize this record deal. And it’s not just Ford that’s feeling the heat – GM and Stellantis are also