After 41 days of strike action at U.S. manufacturers Ford, General Motors and Stellantis, the UAW and Ford reached an “agreement in principle” on Wednesday. President Joe Biden immediately called the event “historic.” “I applaud the UAW and Ford for coming to an agreement after difficult, good-faith negotiations and reaching a historic agreement in principle tonight,” Ethan said in a White House statement.
The agreement includes a 25 percent increase in base salary and cost-of-living benefits, the UAW said. Workers still must ratify it in a vote that will take place in the coming weeks. Ford said he was “satisfied” with the result. “We achieved something no one thought possible,” said Sean Fein, president of the UAW union. “Since the strike began, Ford has put 50% more on the table than when we walked out. This agreement sets us on a new path to turnaround Ford, a Big Three company. (Editor’s note: nickname of three historical manufacturers) and throughout the automotive industry. »
General Motors and Stellantis are under pressure
The strike over the development of the next collective bargaining agreement on Tuesday mobilized a total of about 45,000 employees out of the 146,000 registered with the UAW. “We are focused on restarting the Kentucky pickup plant, Michigan Assembly plant and Chicago Assembly plant, returning 20,000 Ford employees to work and delivering our full line of products to our customers,” Ford CEO Jim Farley said in a statement.
Once an agreement in principle is reached, unions sometimes do not call off the strike until it is ratified by members. But the UAW announced that Ford workers would return to their jobs to put pressure on General Motors (GM) and Stellantis. “This is a strategic decision to reach the best possible agreement,” said Chuck Browning, UAW vice president. “The last thing GM and Stellantis want is for Ford to return to full production while they are running out of time.”
On Tuesday, the UAW again called on its 5,000 members working at GM’s Arlington, Texas, plant to also go on strike after the manufacturer reported better-than-expected quarterly results. “Another record quarter, another record year. As we have been saying for months: record profits mean record contracts,” commented Sean Fein.
Increase from 30% to 150%
The tentative contract reached with Ford calls for a wage increase slightly below the 40 percent that Sean Fein demanded when the UAW began its strike on Sept. 15, but it is significantly higher than the 9 percent originally offered by Ford in August.
“The agreement provides for a 25% increase in base wages until April 2028,” the union clarified in its press release. “In total, this would increase the maximum salary by more than 30%, or more than $40 per hour. (Editor’s note: about 38 euros)and increasing starting wages by 68% to more than $28 an hour. (Editor’s note: about 26.5 euros) “Ford’s lowest-paid workers will benefit from increases of more than 150% over the life of the agreement,” the UAW further noted.
The agreement also eliminates wage levels that disadvantaged younger workers, increases pensions for current retirees and guarantees the right to strike if factories close. “Together we will turn the tide for the working class of this country,” said Sean Fein.
Source: Le Parisien
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