The United Auto Workers (UAW) union announced on Wednesday that it has secured a tentative contract agreement with Ford, marking a significant step toward ending the nearly six-week-long strikes that have affected Detroit automakers, reports the Associated Press.
The four-year contract deal, still pending approval from 57,000 union members at Ford, could bring an end to the UAW’s series of strikes at targeted factories run by Ford, General Motors, and Stellantis. Furthermore, the agreement with Ford may set the pattern for negotiations with the other two automakers.
UAW President Shawn Fain hailed the tentative deal as a victory for the union, stating that Ford offered 50% more money than it did before the strike commenced on September 15. Under this agreement, workers are set to receive a 25% general wage increase, along with cost-of-living raises that will push the pay increase to over 30%, exceeding $40 per hour for top-scale assembly plant workers by the end of the contract.
Previously, all three automakers had offered 23% pay increases. Assembly workers will receive an 11% increase upon ratification, almost equal to all the wage increases workers have seen since 2007.
Typically, in past auto strikes, a UAW deal with one automaker has led to the other companies matching it with their own settlements. General Motors and Stellantis expressed their commitment to reach an agreement soon.