UAW appears to be edging closer to a tentative deal with Ford, sources say

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UAW appears to be edging closer to a tentative deal with Ford, sources say
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The sources said the union made a counter-offer to Ford that proposes a 25% general wage increase over the life of a new four-year contract and said negotiations on Tuesday extended into Wednesday morning

that would be critical to ending the union’s six-week-old strikes against the three major Detroit automakers, two people with knowledge of the talks said Wednesday.

It’s still possible that the negotiations, despite the meaningful progress being made, could unravel. But if the UAW can reach a tentative agreement with Ford, it would be used as a model to seek similar contract settlements with GM and Stellantis. Typically, during past auto strikes, a UAW deal with one automaker has led the other companies to match it with their own settlements.

On Tuesday, about 5,000 workers at GM’s assembly plant in Arlington, Texas, walked out, halting production of truck-based SUVs that are huge profit makers for the company. A day earlier, the UAW’s president, Shawn Fain, had added 6,800 employees at Stellantis’ Ram pickup plant in Sterling Heights, Michigan.

Neither the companies nor the union would comment on the talks Wednesday. The union’s counter-offer of a 25 per cent wage increase over four years was reported earlier by Bloomberg News and the trade publication Automotive News. When contract talks began in July, the union sought 40 per cent pay raises over four years as well as the restoration of cost-of-living raises. The union had given up the cost-of-living increases in 2009 to help the companies survive the aftermath of the Great Recession.

All but one of these plants are joint ventures with Korean battery makers. GM has agreed to this, but the other companies have balked, saying their joint venture partners must also agree.

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