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Transportation equipment industry

Ford and UAW Reach Tentative Agreement, Avoid Costly Strike

Strategic Insights

— 1 min read

A tentative agreement between Ford Motor Co. and the United Auto Workers (UAW) has been reached, averting a costly strike that could have involved an estimated 100,000 workers nationwide. The agreement was negotiated throughout the night in Dearborn, Michigan, and was finalized around 1 p.m. on Saturday. The deal includes a 3 percent annual raise for four years, as well as a signing bonus. Local union officials in St. Paul, Minnesota, where workers had walked out in protest, expressed relief that a deal was reached.

Key Takeaways:

  • The tentative agreement between Ford and the UAW was reached after a brief strike at several plants, including the Twin Cities Assembly Plant in St. Paul, which has nearly 2,000 workers, more than 1,800 of whom are represented by Local 879.
  • The strike was caused by a communication lapse between Detroit and St. Paul, which resulted in about 875 overnight-shift workers being sent home at 10:59 p.m.
  • The walkouts at Ford plants in St. Louis, Claycomo, Mo., and Flat Rock, Mich. were designed to be a "wake-up call" to Ford, and lasted about 5.5 hours.
  • The agreement follows the pattern set by the UAW in deals with General Motors and DaimlerChrysler, with four-year agreements and 3 percent annual raises each year.
  • The deal also includes a signing bonus and allows the spin-off of Visteon Automotive Systems, Ford's parts division.
  • UAW officials had opposed the company's plans for Visteon, citing concerns about pay and job cuts.

Statistics:

  • 100,000: Estimated number of workers nationwide involved in the potential strike.
  • 3 percent: Annual raise included in the agreement for four years.
  • 5 hours and 30 minutes: Length of the walkouts at several Ford plants.
  • 250: Number of trucks that would have been produced during the walkouts, according to union officials.
  • 23,500: Number of UAW workers employed by Visteon Automotive Systems.
  • 4 years: Length of the agreement.

Sources:

  • "Ford, UAW reach tentative agreement to avoid costly strike" - The Associated Press
  • "UAW Leaders: Strike is "Unnecessary"" - Wisconsin Sunday Telegram
  • "Ford, union reaches tentative agreement" - Detroit Free Press
  • "UAW Local 325 treasurer: Workers walked out to send message" - The St. Louis Post-Dispatch
  • "Visteon spin-off wins union approval" - The Wall Street Journal
  • "UAW, Ford union near deal on parts spin-off" - The Detroit News

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