Ford Gives In to Striking Workers and Makes Heavy Concessions in the US

Are we heading towards the end of the automotive workers’ strike in the United States? It’s about time, after a whopping 41 days of mobilization by some employees who are members of the United Auto Workers (UAW) union. Nevertheless, a ‘tentative agreement’ seems to have been reached for those working at Ford. This agreement, which still needs to be ratified, promises several advancements for the workers. These include a staggering 25% increase in the base salary. Cost-of-living allowances are also planned. This goes beyond what the striking workers had imagined, according to Shawn Fain, president of the UAW union: ‘We have achieved things that no one thought were possible.’ ‘Since the beginning of the strike, Ford has put 50% more on the table than when we walked out.’ ‘This agreement puts us on a new path to rectify the situation at Ford, at the Big Three (the nickname for the three major automakers, which includes GM and Stellantis), and in the entire automotive industry.’ Ford has given in. It is worth recalling that last August, Ford proposed a salary increase of… 9%! The unionists, on the other hand, were asking for 40%. So, it will be slightly less than what they wanted but far beyond what Ford could offer. Some workers will now be paid over $40 per hour. The salary tiers, which penalize young employees, will be eliminated. On the other hand, the pensions of retirees will be improved. The right to strike will finally be guaranteed in the event of a plant closure, as noted by the UAW: ‘The agreement provides for a 2% increase in the base salary until April 2028.’ ‘In total, it will result in an increase of over 30% in the highest salary, which is over $40 per hour, and a 68% increase in the starting salary, to over $28 per hour.’ ‘The lowest-paid workers at Ford will receive an increase of over 150% over the duration of the agreement.’ Joe Biden himself applauds the outcome of this conflict: ‘Together, we are reversing the trend for the working class in this country,’ Shawn Fain also rejoices. This is something that Joe Biden, the President of the United States, did not fail to highlight. After already speaking about the strike, he referred to a ‘historic’ agreement. ‘I applaud the UAW and Ford for coming to an agreement (…) and for reaching a historic tentative agreement.’ This will allow the paralyzed Ford factories to restart, which is what Bill Ford, the great-grandson of the company’s founder Henry Ford, wanted. Jim Farley, CEO of the company, mentions in a statement that they are focused on ‘restarting the Kentucky pick-up plant, the Michigan assembly plant, and the Chicago assembly plant.’ This will put even more pressure on Stellantis and General Motors, where negotiations have not resulted in an agreement and where the strike continues. Chuck Browning, vice president of the UAW, knows that this news plays in favor of the interests he defends. ‘The last thing GM and Stellantis want is for Ford to regain full production capacity while they waste time,’ he says. It remains to be seen how this will affect the situation.

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