Additional labor costs from the agreement will total $8.8 billion by the end of the contract, translating to about $900 per vehicle by 2028, Ford Chief Financial Officer John Lawler said in a company release.
The UAW unveiled a website where workers at 13 different companies can electronically sign union authorization cards in a first step toward attempting to organize their factories.
The company said it expects to absorb increased labor costs and have enough left to buy back stock worth nearly one quarter of the company’s $44 billion market value.
With the deals set to be approved, workers at Ford and Stellatis will join counterparts at General Motors in ratifying the record contracts, ending a contentious labor dispute that brought a punishing series of strikes over six weeks.
The outcome was closer than expected after the UAW’s celebrations of victories last month on many key demands that led to six weeks of targeted walkouts against GM, Ford and Stellantis.
The outcome of the GM vote is uncertain, despite the UAW’s celebrations of victories last month on many key demands that led to six weeks of targeted walkouts against GM, Ford and Stellantis.
The automaker, formed in the 2021 merger of Fiat Chrysler and PSA Peugeot of France, said it is taking the action “to protect our operations and the company.”
Critics say the new rule is an overreach by the labor-friendly Biden administration that undermines independent business owners. Some—including the American Hotel and Lodging Association—have already sued to block it.
At nearly four months, it was by far the longest strike ever for film and television actors.
The agreements provide a blueprint for which vehicles Stellantis, Ford and General Motors intend to build in the coming years and where they will do so.
Local union leaders from across the country at Jeep maker Stellantis voted unanimously on Thursday to send the contract to members for a vote. General Motors local leaders will meet on Friday.
General Motors, Ford and Stellantis are facing sharply higher labor costs, estimated by some analysts at exceeding $1 billion per year, per company.
The United Auto Workers provided some information on the deals, including a detailed explanation of the agreement it reached with Ford. The agreement is expected to become the model for later settlements with GM and Stellantis.
Organizers say retail pharmacists are not looking for more pay or vacation time. The protest is more about giving employees the ability to do their jobs safely.
The contract with General Motors is similar to those reached by Ford and Stellantis, but there are some differences.
GM is likely to be the next company to settle because it has agreed to pull new electric vehicle battery factories into the UAW’s national contract, which essentially unionizes them.
The four-year deal, which still has to be approved by 57,000 union members at Ford, could set the pattern for agreements with General Motors and Stellantis.
About 40,800 workers are now on strike against all three automakers. The strikes, now in their sixth week, cover seven assembly plants and 38 parts warehouses.
United Auto Workers President Shawn Fain said Friday that while Detroit’s automakers have increased their wage and benefit offers, he believes the union can gain more if it holds out longer in contract talks.
United Auto Workers union President Shawn Fain is expected to update members Friday afternoon on progress in contract talks with Detroit’s three automakers as movement was reported with General Motors.
