USA: the automotive union reached an agreement with Ford to end the strike | The parties agreed to a 25 percent salary increase

2023-10-26 22:13:57

The United Auto Workers (UAW) union reached a “historic” provisional agreement with Ford to end the strike that has affected the blue oval manufacturer, General Motors (GM) and Stellantis in the United States since September 15. The agreement, which still must be approved by the workers’ assembly, includes a 25 percent salary increase for employees.

The president of the UAW, Shawn Fain, made the announcement in a message published on social networks in which he assured that the pact was possible after in recent days the union declared strikes at the three most profitable plants of GM, Ford and Stellantis, the so-called “Detroit Big Three.” US President Joe Biden hailed the deal as providing “a record raise to the auto workers who sacrificed so much to ensure” that automakers “can continue to lead the world.”

“This interim agreement is a testament to the power of employers and employees working together to resolve their differences at the bargaining table in a way that helps companies succeed and workers secure wages and benefits to raise a family.” and retire with dignity and respect,” said Biden, who last month participated in a picket, thus becoming the first active president of the country to take part in this type of demonstration.

Ford CEO Jim Farley expressed his satisfaction in a statement and said the company was now focused on returning 20,000 employees to work to reactivate assembly plants in Kentucky, Michigan and Chicago. According to the UAW union, the agreement with Ford guarantees a 25 percent wage increase over the next four years, more than all the increases obtained between 2001 and 2022.

The agreed-upon increase is slightly less than the 40 percent requested by Shawn Fain, but is well above the 9 percent that Ford initially proposed in August. Ford also offered to compensate for the increased cost of living for the duration of the collective bargaining agreement. Along with the salary increase, this will allow a new employee of the company to earn 68 percent more while those already receiving the highest salaries will earn 33 percent more.

The agreement, which now has to be ratified by Ford workers before it is final, establishes the minimum of what the UAW will now demand from GM and Stellantis to put an end to the strike that affects its plants. “We ask all striking Ford workers to come to work while we vote on the tentative agreement. Let’s get back to work to keep the pressure up,” said Chuck Browning, vice president of the UAW.

Although the initial protest affected three plants and only 12,700 workers went on strike, the union gradually expanded the action in the following weeks in search of a better agreement. Over the past two days the UAW escalated the strike at both Stellantis and GM, paralyzing key factories in Michigan and Texas that produce some of these companies’ most profitable vehicles.