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Ford reaches tentative deal with UAW with record pay raises

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Ford and the United Auto Workers union have reached a tentative agreement to end a nearly six-week strike.

The tentative deal includes a 25 percent pay increase, raising the top wage to over $40 an hour. 

Starting wages will see a substantial 68 percent increase, reaching over $28 an hour. 

Read More: UAW Extends Strike To Key General Motors Plant In Texas

Additionally, the deal covers the reinstatement of cost-of-living adjustments and provides a three-year path to reach top wages.

The automaker will also grant staff the right to strike over plant closures, among other enhanced benefits.


UAW President Shawn Fain said: ″We told Ford to pony up and they did. We won things nobody thought was possible.”

He said the value of Ford's offer increased by 50 percent compared to the early days of the targeted strikes that began on September 15.

Read More: Ford Executive Chair Pleads To End The UAW Strike

Before the agreement becomes final, it must gain approval from local UAW leaders and be ratified by a majority of Ford's 57,000 union-represented workers. 

During this period, the UAW plans to hold informational meetings and an online briefing to discuss the specifics of the agreement.

The union will make it available online with summaries.

Autoworkers on strike with Ford will return to work while the approval and voting process unfolds, as confirmed by UAW Vice President Chuck Browning.

Read More: Ford Can’t Improve Its Contract Offer To UAW As It’s “At The Limit”

The completion of this agreement is part of a strategic move to secure the best possible deal for UAW members. 

Browning said: “Like everything we’ve done during this ‘stand-up’ strike, this is a strategic move to get the best deal possible.

“We’re going back to work at Ford to keep the pressure on Stellantis and GM. 

“The last thing they want is for Ford to get back to full capacity while they mess around and lag behind.”

Ford said it was “pleased to have reached a tentative agreement.” 

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The company is now focusing on resuming production at key plants, including the Kentucky Truck Plant, the Michigan Assembly Plant, and the Chicago Assembly Plant. 

The walkouts involving approximately 16,600 workers disrupted these facilities.

Compared to the 2019 contract, the gains achieved in this tentative agreement are valued at over four times the previous gains. 

It represents the most significant base wage increase for Ford workers in more than two decades.

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Negotiations between Ford, General Motors, Stellantis, and the UAW have largely centered on economic aspects.

The parties failed to reach new contracts covering 146,000 autoworkers by the initial September 14 deadline. 

This year's negotiations diverged from past practices.

The UAW initiated talks with all three automakers concurrently rather than bargaining with each individually.

GM and Stellantis also released statements expressing their intention to continue working with the UAW to reach tentative deals shortly.

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