Ford and Stellantis workers approve new labor contract as UAW seals deal with Detroit Three
United Auto Workers members at Ford Motor and Chrysler parent Stellantis voted to ratify a record-setting tentative labor agreement, the union’s vote tracker showed Friday.
The deal was supported by approximately 68% of Ford and Stellantis voting members. He had a margin of more than 12,600 votes in Ford and a lead of 9,600 votes in Stellantis with only a few small local results yet to be voted on or reported.
The votes secure the UAW’s tentative deal with the three Detroit automakers through April 2028, which includes a 25% increase in base wages and will cumulatively increase the maximum wage by 33%, combined with estimated cost adjustments. life at more than $42 a year. hour.
General Motors workers voted Thursday in favor of the deal, with about 55% of nearly 36,000 members in favor.
Stellantis, Ford and the UAW had no comment.
The agreement includes a $5,000 bonus and an immediate 11% salary increase upon ratification. The contract also increases the salaries of current temporary workers by 150% by 2028 and will convert them to permanent employees.
The agreement also reduces the time needed to reach the maximum salary from eight to three years.
The new contract follows an unprecedented six-week campaign of coordinated strikes at all three Detroit automakers.
In the end, the union managed to achieve record pay increases for auto workers after years of stagnant wages and painful concessions following the 2008 financial crisis.
The UAW now plans to focus on organizing non-union auto factories operated by foreign automakers and Tesla.
When President Biden, a Democrat, visited Illinois last week, he endorsed the UAW’s efforts to unionize Tesla and Toyota, adding that all American auto workers deserve a deal similar to the UAW’s recent deals with the Detroit Three.
Hyundai Motor, Toyota Motor and Honda Motor have announced significant wage increases for American factory workers after contract agreements with the UAW were announced.
Automakers are looking to cut costs as they shift to electric vehicles and face higher hourly labor costs.
Ford has estimated the new contract will add between $850 and $900 in labor costs per vehicle.
Stellantis said on Monday it was offering voluntary buyouts to 6,400 U.S. salaried employees. The offered buyouts target about half of the company’s salaried U.S. employees who are not represented by a union, currently numbering 12,700. Another 2,500 Stellantis salaried workers in the U.S. are unionized and are not offered the current termination.
