US Auto Workers Union Announces Preliminary Deal With Ford

New York, (APP - UrduPoint / Pakistan Point News - 26th Oct, 2023) The US auto workers union announced a tentative agreement with Ford late Wednesday, a breakthrough in a 41-day stoppage on Detroit's "Big Three" car manufacturers.

The deal, which rank-and-file workers must still approve in a vote, includes a 25 percent wage increase for hourly employees, the United Auto Workers (UAW) union said.

Other key elements include guaranteed cost-of-living adjustments; an elimination of different pay levels or "tiers" that disadvantage junior employees; and a right to strike over plant closures.

Ford confirmed the agreement, saying "we are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our US operations."

The wage increase is somewhat lower than the 40 percent sought by UAW President Shawn Fain when the UAW launched the strike on September 15 in the first ever simultaneous stoppage of Detroit's Big Three (Ford, General Motors and Stellantis).

However, it is much above the nine percent increase Ford initially proposed in August.

"This agreement sets us on a new path to make things right at Ford, at the Big Three, and across the auto industry," Fain said, while stressing that the final decision rests with members.

"We're going to let that democratic process take its course," said Fain, calling the rank-and-file "the highest authority."

Following a tentative agreement, labor unions sometimes do not end a strike until the accord is ratified by members.

But in a twist, the UAW said Ford workers would return to their shifts to apply pressure to GM and Stellantis.

"This is a strategic move to get the best deal possible," said UAW Vice President Chuck Browning, adding that "the last thing" GM and Stellantis want is for Ford to get back to full capacity while they mess around and lag behind."