The United Auto Workers union reached a tentative accord with Ford Motor Co. on Wednesday, the union announced.
“Our stand-up strike has delivered,” union president Shawn Fain said on a recorded video on Facebook.
“Ford knew what was coming on Wednesday if we didn’t get a deal,” Fain said.
Union leaders will meet in Detroit on October 29. If those officials vote to approve the accord, it will go to members for consideration. Regional meetings will then take place. “After that, it will be up to the members to vote on the deal,” Fain said.
The accord calls for a 25% boost in wages over four years, the UAW said. There will also be cost-of-living increases that will mean a 30% raise during the agreement, according to the union.
The tentative agreement was the first breakthrough between the Detroit-based union and Detroit automakers. The UAW went on strike against some factories of the automakers, which also included General Motors Co. and Stellantis, in mid-September.
The union has been adding automaker operations to its strike. Earlier this month, the UAW went on strike at Ford’s Kentucky Truck Plant in Louisville. That factory is one of Ford’s most profitable factories. It produces Super Duty pickup trucks (F-250 and above) and other models.
This week, the UAW expanded its walkout to major GM and Stellantis factories. Those plants, like Ford’s Kentucky Truck Plant, assemble important models for the companies.
For the UAW, the 2023 round of talks was much different. Ford in recent years sought to establish close ties with the UAW. This year, however, the UAW was critical of Ford. The automaker’s executive chairman, Bill Ford, earlier this month sought to calm the waters.
“We need to come together to end this acrimonious round of talks,” Bill Ford said on October 16. “I will never consider our employees as enemies. This should not be Ford versus the UAW. It should be Ford and the UAW versus Toyota, Honda, Tesla, and all the Chinese companies that want to enter our home market.”
Fain on Wednesday night said the union “made history” in securing gains for workers.
“I applaud the UAW and Ford for coming together after a hard fought, good faith negotiation and reaching a historic tentative agreement tonight,” President Joe Biden said in a statement. “This tentative agreement provides a record raise to auto workers who have sacrificed so much to ensure our iconic Big Three companies can still lead the world in quality and innovation.”
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