Local United Auto Workers (UAW) union leaders have approved a tentative agreement with Ford Motor, which includes $8.1 billion in new plant investments and $5,000 ratification bonuses. The 4 ½-year deal will now be presented to 57,000 UAW-Ford members for informational meetings and voting.
The agreement comes after the UAW launched targeted strikes against Ford, General Motors, and Stellantis due to the failure to reach deals before the September 14 deadline. The UAW has already announced a tentative agreement with Stellantis but is still in negotiations with GM.
Under the agreement, Ford will invest $8.1 billion in new plant investments, including $2.1 billion for Ohio Assembly, $1.2 billion for a new electric vehicle at Louisville Assembly, $1 billion in Kansas City Assembly, and $900 million for F-150 production and a new electric truck.
In addition, UAW members will receive economic gains such as 25% compounded wage increases, improved profit-sharing payments, and three-year progression to top pay rates. The raises include an 11% increase upon ratification, followed by 3% increases for the next three years, and a 5% increase in October 2027. This will raise the top wage to over $40 an hour.
UAW President Shawn Fain and UAW Vice President Chuck Browning released a joint statement expressing their confidence in the agreement. They stated, “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 union aims to use this record-breaking contract as a catalyst for organizing efforts beyond the “Big Three” Detroit automakers. Fain emphasized the UAW’s goal of organizing auto companies outside of the “Big Three” and expanding their influence in the industry.
The agreement also includes provisions for job security and easier organizing rights at upcoming battery plants and electric vehicle assembly plants. The UAW secured these benefits, including job opportunities at a battery plant being constructed by Ford in Michigan.
One notable change in the deal is the extension of the contract length from four years to four and a half years, aligning it with May Day or Workers’ Day on May 1. Fain called for other unions to align their contract deadlines with this timeframe as well.
While the agreement is considered a record-breaking achievement, it falls short of some of the UAW’s initial goals, including a 40% pay increase, a 32-hour workweek, and traditional pensions for all workers.
The UAW-Ford members will now have the opportunity to attend regional informational meetings and vote on the tentative agreement. The voting process is expected to take a couple of weeks, but no specific timeline has been provided by the union.