The union provided some details about the deals, including a detailed explanation of the agreement it reached with Ford. The agreement is expected to be a model for subsequent settlements with GM and Stellantis. Rank-and-file members of the UAW must ratify any contract before it takes effect.
“We won things that no one thought possible,” UAW President Shawn Fain said when he announced the tentative agreement last week.
The union represents 57,000 workers at the company, and about 16,600 of them were on strike. Here are the key terms of the agreements, as detailed by the union:PAY
The tentative agreements call for a 25% wage increase by April 2028, bringing the top pay to about $42 an hour, according to the union. This starts with an 11% increase upon ratification, three annual increases of 3% each and a final increase of 5%. The UAW said the restoration of cost-of-living increases, which were suspended in 2009, could push the total increase to more than 30%.
The union initially asked for a 40% wage increase, but scaled that down to 36% before the strike began on September 15. Ford’s last offer before the strike was 9% more pay over four years. More recently, Ford, GM and Stellantis all offered 23% total pay increases.
For historical comparison, the union said its employees saw a 23% pay increase between 2001 and 2022.
BONUSES
The deals include ratification bonuses of $5,000.
TEMPORARY EMPLOYEES
The union said Ford’s temporary workers will receive pay increases totaling 150% over the life of the agreement, and that workers at certain facilities will also receive excessive pay increases. The temporary workers will also get the ratification bonuses and profit sharing starting next year, officials said.
ADVANTAGES
The companies did not agree to bring back traditional defined benefit pension plans or retiree health care for workers hired since 2007. But they did agree to increase 401(k) contributions to about 9.5%.
SHORTER WORKWEEK
The UAW asked for a shorter work week: 40 hours of pay for 32 hours of work. It did not receive that concession.
EMPLOYEE CUTTINGS
The union said Ford and GM agreed to end most divisive wage levels, a system that placed new hires on a less attractive pay scale. Fain and union members had highlighted the issue, saying it was unfair that people doing the same work were paid less than colleagues.
CLIMBING THE LADDER
The agreement reduces the time it takes for employees to reach top levels to three years. It lasted eight years under the contract that expired in September.
RIGHT TO STRIKE
The union said it has won the right to strike against any of the three companies over factory closures. The car manufacturers had rejected the proposal at the start of the talks.
ORGANIZING UNION
The deals with Ford, GM and Stellantis could give the UAW a boost as it seeks to represent workers at non-union U.S. factories operated by foreign automakers and Tesla, as well as future factories that will make batteries for electric vehicles.
The union said Ford agreed to place workers at a future battery plant in Michigan under the UAW’s prime contract, and GM agreed to do so with work at Ultium Cells, a joint venture between the company and LG Energy Solution of South -Korea.
Fain pledged Sunday that the union will “organize like we have never organized before” in non-union factories.
“If we return to the negotiating table in 2028, it will not just be with the Big Three, but with the Big Five or the Big Six,” he said in an online message to union members.