Ford issued a statement saying, “We are pleased that“An agreement has been reached,” focusing on restarting the Kentucky truck plant, the Michigan assembly plant and the Chicago assembly plant. ” starLikewise, a company executive said in a statement that the company also looks forward to “resuming operations.”

The Conversation interviews Wayne State University’s Malik Masters Labor and Business Scholarexplaining the content of these contracts and their significance.

What are the terms of the contract?

According to multiple media reports and the union’s own announcement, Ford tentative collective bargaining agreement Includes a 25% salary increase over the next 4.5 years and the restoration of cost-of-living benefits that the UAW lost in 2009.

Additionally, the tentative agreement would convert many temporary workers to full-time positions, increase wages for temporary workers, the right to strike due to plant closures, and significantly increase Ford’s contribution to its company. defined contribution retirement plan.

At the end of Ford Contract with Stellantisthe maximum wage for assembly plant workers will be Over $40 per hour.Will do both Expires April 30, 2028.

Strantis Transaction, According to UAW officialsis otherwise similar to the deal struck by Ford – which is reportedly UAW close to deal with General Motors.

The Stellantis Agreement also contains provisions regarding certain North American facilities, including those owned by Stellantis Idle in early 2023 in Belvedere, IL, the United Auto Workers union said. The UAW president said Stellantis has committed to adding 5,000 new jobs at Belvidere and other plants over the next four years, a stark contrast to previous plans to cut so many jobs over the same period. Shawn Fain said on October 28.

Why do workers feel a strike is necessary? Did the strikes achieve their goals?

Workers know the company enjoys big profit Over the past few years.Taking GM as an example, earn Profit of US$10 billion in 2021 and Will reach US$14.5 billion in 2022.

After the production is completed major economic concessions Helping businesses weather recessions, fierce international competition and General Motors went bankrupt in 2009 Chrysler – before the latter became a division of Stellantis – UAW members believed they deserved a so-called “record contract” for having contributed to “record profits.”

“The Big Three’s days of low wages and job insecurity are coming to an end.” Fein said on October 28. “The days of the Big Three alienating working-class Americans and destroying our communities are coming to an end.”

To map out its aggressive strategy, the union tore out a page from A play by labor leader walter reutherHe led the United Auto Workers from 1946 until his death in 1970. Reuther believed that workers should have a fair share of a company’s vast resources, just like shareholders and customers.

What happens next?

The UAW will release full details of the Ford contract to all Ford worker members on October 29, as long as they Signatures from leaders outside the negotiating team Just that day. Thereafter, rank-and-file members must approve the agreement for it to take effect.

On November 2, Stellantis will go through the same process. A separate agreement the UAW is still negotiating with General Motors also needs to be approved.

Meanwhile, striking Ford and Stellantis workers will return to work as factories and other facilities resume operations. Approximately 18,000 GM employees Still on strike.

How will this affect automakers’ profits?

Some analysts estimate Ford’s contract, if approved, would increase The company’s annual labor costs are $1.5 billion.Ford himself estimates that this could lead to Labor cost per vehicle is $900 offline. Ford also estimates that the strike cost it about $1.3 billion in pretax profits.

To put these numbers into perspective, Ford’s revenue is just over $130 billion the first three quarters of 2023, and Nearly $5 billion in profits.

star It has not disclosed how much it thinks the strike will cost the company.

Malik Masters is a professor of business and an adjunct professor of political science, wayne state university.

This article is reproduced from dialogue Licensed under Creative Commons.read Source article.

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