Wage increase of at least 25% by 2028, etc.
Ratification vote to be held… Strike members return
The United Auto Workers (UAW), which has been on strike against three U.S. auto manufacturers since last month, reached a tentative agreement with Ford on the 25th (local time), the 41st day of the strike.
According to CNBC and CNN Business, UAW Chairman Sean Payne said in a video posted on X (former Twitter), “Our stand-up strike was successful.” Ford also said in a statement, “We are pleased to have reached a tentative agreement.” President Joe Biden also said he applauded both sides for the tentative agreement.
This agreement will not be finalized until after a ratification vote by 57,000 Ford-affiliated UAW members, which is expected to take more than a week. However, it is reported that 16,600 Ford-affiliated UAW members who were on strike will return to work before the ratification process is completed.
Through this tentative agreement, workers’ wages will increase by 11% immediately and by at least 25% by 2028. In addition, the agreement includes the restoration of the cost of living allowance that reflects the rise in prices, and CNN Business explained that if this is combined with the salary increase, it will effectively result in a 30% wage increase.
In addition, it is said that the tentative agreement included increasing starting wages and guaranteeing the right to strike in connection with factory closures.
Previously, the UAW insisted on a 40% wage increase at the beginning of negotiations, but later demanded a 25% increase. Ford countered that it would be difficult to raise wages by more than 23%.
After news of the tentative agreement between the two parties was announced, Ford’s stock price rose 1.3% on the day, closing at $11.54 per share. It rose about 2% in after-hours trading.
Ford is scheduled to announce its third quarter earnings after the market closes on the 26th.
Meanwhile, on this day, General Motors (GM) and Stellantis released statements saying they would cooperate with the UAW to reach a tentative agreement as quickly as possible.
The UAW, which went on strike with 12,700 workers at Ford, GM, and Stellantis plants starting on the 15th of last month, has gradually expanded the scale of the strike depending on the negotiation situation. This week, the sixth week of the strike, the UAW added strikers at the GM and Stellantis plants. As a result, the total number of UAW workers on strike exceeded 40,000, but with this interim agreement with Ford, the total number of workers on strike was reduced to around 30,000.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.