Ford and the UAW have reached a tentative agreement on a new contract.
The agreement must still be ratified by the UAW's membership.
The contract includes wage increases, improved benefits, and commitments for future investments.
Ford Motor Company and the United Auto Workers (UAW) union have reached a tentative agreement on a new contract. The agreement, which was announced on October 26, 2023, comes after weeks of negotiations and a potential strike threat by the UAW. The details of the contract have not been publicly disclosed, but it is expected to include wage increases, improved benefits, and commitments for future investments in U.S. factories.
The UAW's leadership has endorsed the agreement, but it must still be ratified by the union's membership. The ratification process is expected to take several weeks and involves a vote by the union's 150,000 members. If ratified, the contract would replace the previous agreement, which expired in September 2023.
The negotiations between Ford and the UAW were closely watched by the auto industry and labor groups, as they could set a precedent for future negotiations with other automakers. Some observers have expressed concerns about the potential cost of the contract to Ford, given the automaker's recent financial struggles. However, others argue that the agreement could help to stabilize the company's workforce and improve its competitive position.
The tentative agreement comes at a critical time for the auto industry, which is grappling with a global chip shortage and a shift towards electric vehicles. The contract is expected to address these challenges and provide a roadmap for the future of Ford's U.S. operations.