Photo: UAW
Ford is one of America's most important automakers. Alongside Tesla, the Blue Oval is spearheading automotive progress. But that doesn't automatically include being generous. Employees had to strong-arm Ford into giving more to people who were actually doing all the work envisioned by engineers and other white-collar higher-ups. Here's the good part: everyone wins.
There have been voices claiming that UAW strikes would lead to chaos in the car market. Although a strong possibility, such an unfavorable scenario would have only happened if the auto companies weren't going to show any willingness to back down and seriously bargain with the workers' representatives.
The UAW had the funds and the determination to keep going until they got what they wanted or at least something that worked for everyone. But the union also approached the matter with great care. That was underlined by the way in which striking began – instead of asking everyone not to show up to work, UAW picked only a couple of locations and threatened to amp it all up only if the marque wasn't going to settle.
Fortunately, an agreement was reached. What's even better is that the accord between the company and its employees is not just about wage growth. The deal is well-structured and secures the future of communities where Ford is the largest or one of the most important employers. It also helps keep more dollars in the US.
Ford will invest:
The tentative agreement also includes a $10,000 bonus for all salaried workers and $5,000 for hourly employees, on top of the pay increases and the following:
The strikes are now officially ending because the UAW reached a deal with GM as well.
The UAW proved striking works and managed to achieve most of its initial goals. Everyone is now happier that things will return back to normal and employees will receive new raises and bonuses just in time for Christmas.
The UAW had the funds and the determination to keep going until they got what they wanted or at least something that worked for everyone. But the union also approached the matter with great care. That was underlined by the way in which striking began – instead of asking everyone not to show up to work, UAW picked only a couple of locations and threatened to amp it all up only if the marque wasn't going to settle.
Fortunately, an agreement was reached. What's even better is that the accord between the company and its employees is not just about wage growth. The deal is well-structured and secures the future of communities where Ford is the largest or one of the most important employers. It also helps keep more dollars in the US.
Ford will invest:
- $2.1 billion in the Ohio Assembly plant, where a new EV will be manufactured, while the Super Duty and Medium Truck units will remain in production;
- $1.2 billion in the Louisville assembly plant where the Escape and Corsair will run through their remaining lifecycle and eventually be replaced by an EV;
- $1 billion in the Kentucky Truck plant where the Super Duty lineup, the Expedition, the Expedition hybrid, the Lincoln Navigator, and Navigator hybrid will remain in production;
- $400 million in the Chicago Assembly plant where the Explorer, Explorer hybrid, Police Explorer, and the Lincoln Aviator are made;
- $900 million in the Dearborn Truck plant where the F-150, F-150 Raptor, and F-150 Lightning are produced, and a new all-electric pickup truck will be added;
- $50 million in the Flat Rock Assembly, where the Mustang will continue being produced, and another "product" might be added soon;
- $213 million in the Dearborn, Cleveland, and Lima Engine plants, plus the Woodhaven Forging factory;
- $840 million in the Livonia, Sharonville, Van Dyke, Rawsonville, and Sterling Axle plants;
- $560 million in the Buffalo, Chicago, Dearborn Stamping, Dearborn Diversified, and Woodhaven stamping.
The tentative agreement also includes a $10,000 bonus for all salaried workers and $5,000 for hourly employees, on top of the pay increases and the following:
- The reintroduction of the cost-of-living adjustment (COLA);
- Wage tier elimination;
- Temporary worker conversion to full-time employee after nine months;
- $8,000 tuition assistance;
- Equal vacation time for everyone;
- New holiday: Juneteenth;
- Bereavement, Jury Duty, and Tuition Assistance for temporary workers;
- Paid parental leave;
- $1,500 voucher for buying a new Ford;
- New profit sharing formula;
- Changed retirement incentive packages;
- Bigger moving allowance.
The strikes are now officially ending because the UAW reached a deal with GM as well.
The UAW proved striking works and managed to achieve most of its initial goals. Everyone is now happier that things will return back to normal and employees will receive new raises and bonuses just in time for Christmas.
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