DETROIT – Members of the United Auto Workers union on Wednesday began voting on a tentative contract agreement with Ford Motor Company that suspended the weekslong strike against the automaker and launched similar deals at the other Big Three companies.
The voting process began Wednesday, Nov. 1 for unionized Ford autoworkers, who are casting their vote for or against ratification of a tentative deal that both company and union leaders classify as a “record contract.” Employees didn’t wish to speak with Local 4 crews Wednesday morning, but they could be seen arriving to vote early in the morning at UAW Local 900, which represents a variety of workers including those at Ford’s Michigan Assembly Plant and Wayne stamping and assembly plant.
The vote is the final step in the ratification process of the Ford deal that was made after months of negotiations and a weekslong strike at Ford, General Motors and Stellantis. Negotiators came together on the agreement on Wednesday, Oct. 25, suspending the strike at Ford and putting more pressure on the remaining Big Three automakers without deals in place.
Stellantis and GM reached tentative deals with the union in the days that followed, suspending strikes at their facilities, as well. As of Monday, Oct. 30, auto strikes had been suspended at all Big Three facilities nationwide while the tentative deals move through the approval process.
At its peak, the strike saw over 40,000 of the UAW’s 146,000 autoworkers picketing at dozens of facilities in more than 20 states. The historic strike gradually escalated after launching on Sept. 15, and eventually included each of the Big Three’s most profitable plants.
Autoworkers were asked to return to their jobs at Ford, GM and Stellantis nearly immediately after each tentative deal was reached, despite some saying they don’t typically return to work until a deal is ratified following a strike.
Membership votes have begun at Ford, and could begin soon at Stellantis and GM. The UAW’s National Stellantis Council is expected to arrive in Detroit on Thursday to vote on whether to pass the agreement along to the membership for a vote. The deals at GM and Stellantis are similar, but not exactly the same, as the tentative deal with Ford.
If majority of UAW members vote in favor of the Ford deal, it will be ratified and will take effect. If the majority votes against the tentative deal, workers are expected to resume their strike.
Ford deal details
Here’s a breakdown of the Ford deal highlights disclosed Sunday by UAW President Shawn Fain and Vice President Chuck Browning.
Wage increases
Citing the Big Three’s billions of dollars in profits amassed over the last several years, the union made wage increases among its top priority during negotiations. After first demanding a more than 40% wage increase, the union lowered its demand to 36%.
As of last week, the UAW settled for a 25% general wage increase offered by Ford, which will amount to even more with reinstated cost of living adjustments. If the deal is ratified, all Ford workers will receive an immediate 11% wage increase, while other members who are not earning the top-tier wage could see immediate increases of 20%-40%.
The eight-year wage progression previously in place has been shortened to three years under the deal, officials said Sunday, meaning a new hire would earn the top available wage after three years on the job.
If the deal is ratified:
- Those with three or more years of seniority will immediately be bumped up to the top rate, officials said.
- Those with two years will be immediately bumped up to 85% of the top wage rate.
- Those with one year will be immediately bumped up to 75% of the top rate.
- Those within their first 52 weeks on the job will be bumped up to 70% of the top rate.
By the end of the contract, the top wage rate will reach $40.20 an hour without cost of living adjustments. With COLA, the top rate is expected to reach $42.60 by 2028.
For skilled trades workers, the top wage rate should reach $50.57 with COLA by the end of the contract.
Workers at Ford’s Sterling Axle Plant and Rawsonville Plant will see even larger immediate raises, since the company has agreed to eliminate tiered wages there. There, wage increases will range from 53%-88%, depending on their hourly rate, officials said.
“UAW members at Ford will receive more in straight general wage increases over the next four-and-a-half years than we have over the last 22 years combined,” Chuck Browning VP said.
Cost of living adjustments
Cost of living adjustments that were suspended in 2009 due to the Great Recession have been reinstated in the tentative Ford agreement. Officials say COLA is expected to add more than $8,800 to every worker’s paycheck throughout the life of the contract.
The agreement also states that COLA will be folded into the base pay going forward. By the end of this new contract, the COLA raises, minus five cents, will be included in the base pay, officials said.
“It’s a major victory that protects us from inflation now, and keeps our base wage growing into the future,” Browning said.
Temporary employees
Another major goal of the union’s was to get “justice” for temporary workers, who they claim have been exploited for years.
Under the tentative agreement, all current temporary workers who have 90 days of employment will be immediately converted to full-time employees upon ratification. Beyond that, any temporary workers who are continuously employed for nine months will be automatically converted to full-time employees, officials said.
Those nine months would count toward their wage progression.
With the reduced wage progression, temporary workers will reportedly receive a 145% wage increase, not including COLA.
Temporary workers will also begin receiving profit-sharing checks in 2024, and will be eligible for paid bereavement leave and jury duty leave.
Profit sharing
Though Ford wanted to cut profit sharing, Browning said, the union was able to secure “enhancements” instead.
An enhanced profit sharing formula will reportedly take effect for the 2023 plan year, and will include Ford Credit. Browning said if the model was in place last year, it would have added an additional $1,200 to workers’ profit sharing checks.
Retirement
Retirement tiers that were introduced in 2007 were not eliminated in this contract, officials said. Still, the tentative agreement does reportedly include some boosts for retirees.
Current retirees will see annual bonuses of five payments of $500 each. Active members with pensions will also get an “increase in the multiplier for the first time since the 2003 contract,” Browning said.
Members who are building their pensions will get an “immediate increase in life income benefit in $5 per year of credited service,” officials said.
Ford will also match 10% for those with 401Ks.
Job security
Autoworkers have been allowed the right to strike over plant closures in the latest deal.
“That means if Ford starts closing a plant, we have the right to strike the entire company,” Fain said Sunday. “That is our most powerful tool against these companies trying to kill our jobs and gut our communities.”
The automaker has also reportedly agreed to include thousands of electric vehicle and battery jobs under the new agreement. Those at Ford’s Marshall Battery Plant Agreement in Michigan and the Tennessee Electric Vehicle Agreement will be included in the company’s national union contract once the majority of its workers are UAW members.
The agreement is a win for autoworkers concerned about their position in an EV-focused future, in which the carmakers are investing billions in their transition away from traditional vehicles. GM previously made a similar concession, and was the first automaker to do so.
Other elements
All eligible Ford autoworkers will receive a $5,000 lump sum ratification bonus if the membership approves the deal. Temporary workers will also receive the bonus.
Officials say the automaker has also agreed to invest billions of dollars into its plants throughout the life of the contract, which will last four years and eight months. UAW’s Fain said the change in the contract’s expiration date allows the union to strike on May 1, which is May Day, also known as International Workers’ Day.
Other elements of the tentative contract include:
- Two weeks paid parental leave.
- And end to tiers on vacations. In-progression workers with 20 years or more in seniority will get additional 40 hours of vacation time.
- Plans can only mandate one week of vacation time to be used for plant shutdowns rather than two weeks.
- Juneteenth is declared a holiday.
Next steps to approve tentative deals
After reaching a tentative contract agreement with Ford, UAW President Fain laid out the following steps that the union will observe in its process to either approve or reject the deal. The same process is expected to be applied for Stellantis and GM autoworkers, as well:
- ✅ Council review: The UAW’s national councils will vote on whether to send the tentative agreement to the entire membership. The UAW National Ford Council has already voted in favor of the Ford deal, and has moved on to the next steps.
- ✅ Share agreement details: If the councils approve the deals, the UAW will share the full details of the deals on social media for all members and the public to review. Leadership shared those details on Sunday, Oct. 29.
- ✅ Local union meetings: Regional meetings will be held for local UAW leaders to be walked through the details of the agreements. This step has begun, but it’s unclear if all regional meetings have been held as of Nov. 1.
- Member vote: The locals will hold informational meetings to review and discuss the tentative agreements, and then members will be able to cast their vote for or against ratification. Voting began for some locals on Nov. 1.
If the majority of the UAW members vote in support of the four-year and eight-month contract agreements, they will be ratified and will take effect. Union members also have the power to reject the tentative agreements.