Ford reaches tentative deal with striking autoworkers, marking a huge breakthrough in a work stoppage that’s cost the industry billions

Ford reaches tentative deal with striking autoworkers, marking a huge breakthrough in a work stoppage that's cost the industry billions

The United Auto Workers reached a tentative labor agreement with Ford Motor Co., people familiar with the negotiations said. The breakthrough puts pressure on the carmaker’s two chief rivals — which are set to meet with the union Thursday — to reach deals and end a protracted strike that has cost the industry billions of dollars.

The provisional deal at Ford includes a 25% hourly wage hike and is subject to union leadership approval, according to the people, who weren’t authorized to speak publicly. An announcement is expected around 8 p.m. local time in Detroit.

Once union leadership signs off, the agreement must also be ratified by Ford’s 57,000 US hourly workers, a process that could take weeks and has an uncertain outcome because expectations have been raised by UAW President Shawn Fain’s call for a transformational deal.

Pay was one of the last issues to be ironed out during the talks. The union had originally sought a 40% raise and 32-hour work week before reining in its demands. Ford earlier agreed to cost-of-living allowances, converting temp hires and expediting how long it takes workers to get to the top wage rate.

Subscribe to CHRO Daily, our newsletter focusing on helping HR executive navigate the changing needs of the workplace. Sign up for free.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Skip to content