The United Auto Workers Union (UAW) and Ford Motor Company have reached a tentative agreement, potentially ending the strike at the Big Three automaker that began two weeks ago. The UAW represents over 50,000 factory-level employees at Ford and has been negotiating with the company over wages and job security issues.
The agreement, which has yet to be brought before members for a vote, is dependent on ratification by the union members. The details of the agreement have not been fully disclosed yet, however reports indicating that significant issues have been resolved in the talks have been made, offering a ray of hope to the striking workers and end to the stalemate.
The UAW had previously secured similar tentative agreements from both General Motors and Fiat Chrysler, which ended the corresponding strikes at those two automakers. Ford had continued to exchange proposals with the union since the start of the strike, although there had been concerns over the lack of progress in talks until the tentative agreement was reached.
The strike had taken a toll on the company’s operations in North America, with a sharp decline in output due to the walk-out. With the tentative agreement now in place, Ford can move forward with making up for lost business and resume production operations for its customers.
It remains to be seen whether UAW members will approve the agreement. If ratified, the four-year contracts that are established with the respective automakers will have the opportunity to expire simultaneously in 2023. This would allow the UAW to negotiate a comprehensive set of contracts with the Big Three automakers in one year, instead of having to stagger them over multiple years. This could bring a further level of stability in labor relations between the Big Three and the UAW, setting up a better foundation for the industry in the years to come.