October 30, 2023
“Strike a Deal: UAW and Ford Make Tentative Agreement, Bringing End to Big Three Automaker Strike
On Wednesday October 16th, the United Auto Workers (UAW) and Ford Motor Company have reached a tentative agreement for a new four-year labor contract, potentially ending the strike at Ford that continued for six weeks.
This agreement comes after negotiations between Ford and the UAW have gone on since July. This is the first contract negotiated between the UAW and the Big Three automakers since 2011, so both parties are relieved that a deal was made. Ford has agreed to issue a 3% wage increase for all current employees and an additional 8% of profit sharing for those currently employed.
The agreement comes with the promise of improved job security, offering employees severance and retraining programs. The UAW is also committing to no layoffs due to automation or robotics over the duration of the contract. In exchange, the UAW is offering to lower the starting hourly wage for new employees, currently at $17 an hour, so Ford can remain competitive in hiring and keep costs down.
This tentative agreement between the UAW and Ford Motor Company is a huge relief for all of those affected by the strike. It secures job security and wage increases for current workers, lowers the starting pay for new employees, and offers protection against layoffs. The Big Three automakers are now one step closer to returning to normal operations.