Ford reached a tentative contract agreement with the United Auto Workers union after almost six weeks of strikes, becoming the first of the big three Detroit automakers to end plant walkouts.
UAW had kept pushing for higher wages, and Ford ultimately decided to acquiesce, granting 25% increases over the contract, which would stretch into 2028.
The union said the cumulative increase amounts to a top wage of more than $40 an hour and a starting wage of $28 an hour.
The agreement, which awaits union member ratification, is the first among the big three and therefore pressures General Motors and Jeep maker Stellantis to follow suit.
UAW President Shawn Fain said in a video statement that the union aimed to get a greater share of automakers’ record profits in wages.
“Since the strike began, Ford put 50% more on the table than when we walked out. This agreement sets us on a new path to make things right at Ford, at the Big Three, and across the auto industry. Together, we are turning the tide for the working class in this country.”
Ford President and CEO Jim Farley said in a statement that it’s proud to employ the most hourly auto workers and that it’s looking forward to “shipping our full lineup to our customers again.”
The company releases its third-quarter results later today, though full effects of the strike may not be seen until the fourth.
