The United Auto Workers (UAW) and the automaker giant Ford Motor Company announced on Thursday that they had successfully reached a tentative agreement on contracts that could potentially end the 11-day strike initiated by the UAW against the Big Three American Automaker.
The UAW began the strike on September 16th, in efforts to not only push for higher wages and better working conditions, but also to push the Big Three U.S. Automakers (Ford, GM and Fiat Chrysler) to start investing more money into job creation and expansion, as well as more investment in their factories and facilities.
The tentative agreement was reached by UAW and Ford during the late hours of Wednesday, October 2nd. The new tentative contract proposes a three-year contract with a minimum wage rate of $15/hour and an end to “in-sourcing” (using low-wage temporary workers for jobs that could be filled by permanent employees). This agreement also includes an expansion of the company’s profit-sharing program, health care benefits and a lump-sum signing bonus upon successful ratification of the contract.
The announcement to end the strike came just hours before the Big Three unveiled their plans to invest an additional $2 billion into their factories and create thousands of new U.S. jobs in the coming years. These investments include the construction of four new vehicle plants, as well as the refurbishment of several existing factories.
The new investments and agreement between Ford and the UAW constitutes a major win for both sides, and could potentially set the standard for further contract negotiations between the UAW and the other two Big Three U.S. Automakers, GM and Fiat Chrysler.
The ratification process for the Ford and UAW contract has just begun, so the future of this tentative agreement is by no means set in stone. However, the signs of progress being made between the UAW and the Big Three automakers is a promising sight for the U.S. Automotive industry, and if all goes as planned, it should be a big win for the union, the company, and all those who work in it.
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