The UAW Proved Striking Works, Here's What It Obtained From Ford

In July, the UAW started negotiations for a new national contract with Ford, General Motors, and Stellantis. They couldn't reach a favorable outcome, so a stalemate period began. That was until September 15, when the workers started striking.

But instead of having all 150,000 members leave their posts and join the picket lines, the UAW approached this situation methodically. The leadership asked only some workers to stop showing up as scheduled and always remained available to bargain. If the negotiations continued to result in no agreement, they would threaten to expand the strikes.

That was exactly what happened, and nobody can accuse the UAW of crippling America's most important auto brands. They escalated gradually, transparently, and without causing too much turbulence. It was (and still is) a brilliant strategy because it left everything in the hands of the companies.

Now, Ford has decided it had enough of this back-and-forth and offered the UAW leadership a good counteroffer. Initially, the organization wanted a four-day, 32-hour workweek, a 46% raise over four years (which was subsequently dropped to 36%), better health benefits, higher pensions, and, among other things, the reinstatement of the cost-of-living adjustment (COLA) and no employment tiers.

Ford was the only one willing to bargain seriously with UAW and offered the best deal. Still, it wasn't enough for the workers. They continued striking.

But now, things are taking a different turn. UAW President Shawn Fain announced last night that they have reached a tentative agreement with Ford. They obtained:

• an immediate 11% wage increase for all Ford workers;
• a 25% general wage increase (without the COLA) over 4.5 years;
• a 68% wage increase for new employees and a 33% raise for those earning the maximum for their post over the same period of 4.5 years;
• the COLA's return, which adds another 5% to the general wage increase;
• an over 150% wage increase for temporary workers;
• an 85% immediate raise for lower-tiered workers;
• the reintroduction of the three-year wage progression;
• wage tier elimination;
• $3 more for the pension multiplier;
• the right to strike over plant closures (which might come in handy as brands move toward total electrification).

All those things (and others that will be detailed soon) amount to an overall value increase of four times over the worth of the 2019 Collective Bargaining Agreement (CBA).

But it doesn't stop here. Every UAW member will have a chance to analyze the deal and share their opinion. The accord enters a four-stage process that allows workers to verify it thoroughly and vote on it.

Until then, Fain told Ford's striking employees to return to work. The Blue Oval averted a crisis and should come on top of the situation. Meanwhile, GM and Stellantis are still not willing to budge. They'll most likely have to, now that one of the Detroit Three has "ponied up."

Finally, it's worth remembering that many of the advantages won during this complicated bargaining stage were lost after the 2008 financial crisis. Workers agreed to get paid less to hold onto their jobs and help the companies navigate those troubled times.

Record profits mean record contracts. We have a tentative agreement at Ford. #StandUpUAW pic.twitter.com/Z00T5CfQJN

— UAW (@UAW) October 26, 2023