Ford cut a deal with UAW. It could set tone for GM, Stellantis talks.

Striking auto workers have reached a tentative contract with Ford after six weeks of talks. The deal still has to be approved by the union, but does not apply to the other two automakers, where work stoppages continue.

First Look

The United Auto Workers union said Wednesday it has reached a tentative contract agreement with Ford that could be a breakthrough toward ending the nearly six-week-old strikes against Detroit automakers.

The four-year deal, which still has to be approved by 57,000 union members at the company, could bring a close to the union’s series of strikes at targeted factories run by Ford, General Motors, and Jeep maker Stellantis.

The Ford deal could set the pattern for agreements with the other two automakers, where workers will remain on strike. The UAW called on all workers at Ford to return to their jobs and said that will put pressure on GM and Stellantis to bargain. Announcements on how to do that will come later.

“We told Ford to pony up, and they did,” President Shawn Fain said in a video address to members. “We won things no one thought possible.”

UAW Vice President Chuck Browning, the chief negotiator with Ford, said workers will get a 25% general wage increase, plus cost of living raises that will put the pay increase over 30%, to above $40 per hour for top-scale assembly plant workers by the end of the contract.

The UAW initially demanded 36% general raises, defined-benefit pensions for workers hired after 2007, and pension increases for retirees. When the talks started, Ford offered raises of 9%. 

Typically, during past auto strikes, a UAW deal with one automaker has led to the other companies matching it with their own settlements. In the offers made last week, Ford, Stellantis, and General Motors all offered 23% pay increases. 

GM said in a statement it is "working constructively" with the union to reach an agreement as soon as possible. Stellantis also said it's committed to reaching a deal “that gets everyone back to work as soon as possible.”

Mr. Browning said temporary workers will get more in wage increases than they have over the past 22 years combined. Temporary workers will get raises over 150% and retirees will get annual bonuses, he said.

“Thanks to the power of our members on the picket line and the threat of more strikes to come, we have won the most lucrative agreement per member since Walter Reuther was president,” Mr. Browning said. Mr. Reuther led the union from 1946 until his death in 1970.

Mr. Fain said that the union’s national leadership council of local union presidents and bargaining chairs will travel Sunday to Detroit, where they’ll get a presentation on the agreement and vote on whether to recommend it to members. On Sunday evening, the union will host a Facebook Live video appearance and later will hold regional meetings to explain the deal to members.

While on the picket line at Ford’s Michigan Assembly Plant west of Detroit Wednesday night, local union leaders invited workers across the road to the union hall for a briefing on the deal. As they trickled out of the building, many were smiling and most were relieved.

“It’s an emotional time for me. I’m emotional,” worker Keith Jurgelewicz said as his eyes welled up with tears. “But just super excited that this is over with. I just can’t wait to get back to work and just get on with my life.”

Mr. Jurgelewicz said he is happy that the end of the strike came during his shift on the picket lines, where he has faithfully appeared for all of his shifts.

“Hopefully, GM and Stellantis can get their deals done. … Historic day for us,” he said.

Workers with pensions also will see increases for when they retire, and those hired after 2007 with 401(k) plans will get large increases, Mr. Browning said. For the first time, the union will have the right to go on strike over company plans to close factories, he said.

“That means they can't keep devastating our communities and closing plants with no consequences,” Mr. Browning said. “Together we have made history.”

Ford said it is pleased to have reached the deal, and said it would focus on restarting the huge Kentucky Truck Plant in Louisville, as well as the Chicago Assembly Plant. The Louisville plant alone employs 8,700 workers and makes high profit heavy duty F-Series pickup trucks and big truck-based SUVs.

In all, 20,000 workers will be coming back on the job and shipping the company’s full lineup of vehicles to customers, Ford said.

Ford’s statement made no mention of the cost of the contract. Company executives said last week they were at the limit of what they could pay while still being able to invest in new vehicles and the transition from internal combustion to electric vehicles. All three companies have said they don't want to be saddled with high labor costs that could limit their ability to invest in future vehicles and potentially force them to raise prices.

“This agreement sets us on a new path to make things right at Ford, at the Big Three, and across the auto industry. Together, we are turning the tide for the working class in this country,” Mr. Fain said.

This story was reported by The Associated Press. AP writer Mike Householder contributed from Wayne, Michigan.