The United Auto Workers union and Ford Motor Co. have reached a tentative labor agreement, people familiar with the matter said. The breakthrough puts pressure on the automaker’s two main rivals, who are due to meet unions on Thursday to press for a deal and an end to a protracted strike that has cost the industry billions of dollars.
Ford’s tentative deal includes a 25% increase in hourly wages and requires approval by union leadership, according to people familiar with the matter who were not authorized to speak publicly. An announcement is expected around 8 p.m. local time in Detroit.
Once union leadership signs off, the deal must also be ratified by Ford’s 57,000 U.S. hourly workers, a process that could take weeks and be uncertain as UAW President Shawn Fain called for an agreement transformation agreement, which has raised expectations.
Salary is one of the last issues addressed during negotiations.The union initially sought a 40% pay rise and a 32-hour work week control its requirements. Ford earlier agreed to provide cost-of-living subsidies, convert temporary workers and speed up the time it takes for workers to reach maximum wage levels.
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