The United Auto Workers (UAW) and Ford Motor Co. have reached a tentative labor deal, a breakthrough that puts pressure on Ford's two main rivals to try to end a strike that has cost the industry billions of dollars. Ford agreed to raise hourly wages by a record 25% over the life of the contract, which spans more than four years. With cost-of-living allowances added, top wages are expected to increase by 33%. The union said the maximum wage would be more than $40 an hour.
UAW leadership will vote on the agreement on October 29. The deal must then be approved by Ford's 57,000 U.S. hourly workers, a process that could take weeks.
"We won something no one thought was possible," UAW President Shawn Fain said in a video posted on X Wednesday night. Ford has ramped up production by 50% since the strike began.
In a statement on Wednesday, U.S. President Joe Biden emphasized "worker power" as he congratulated Ford and unions on the deal.
Salary is one of the last issues to be resolved during negotiations. The union initially sought a 40% pay increase and a 32-hour work week, before lowering its demands. Ford earlier agreed to provide cost-of-living subsidies, convert temporary employees to full-time employees, and more.
Wednesday's statement did not address details on key issues, including wages and benefits at battery plants and Fain's initial demand for a 32-hour work week.
Fain did not say whether the preliminary agreement covers the four battery plants Ford is building.
Competitors continue strike
GM and Stellantis NV will meet with the UAW on Thursday, and the union hopes they will accept the same terms, people familiar with the matter said.
Chuck Browning, Ford's chief union negotiator, said the UAW is asking Ford workers to return to work while the agreement is still in the process of being ratified to "put pressure on Stellantis and General Motors."
GM and Stellantis said in separate emailed statements that they are working with the UAW to reach an agreement as quickly as possible.
Ford said in a statement that it is pleased to reach an agreement with the UAW and restart the factory, recall 20,000 Ford employees back to work, and once again deliver a full range of products to customers.