The United Auto Workers (UAW) have reached a tentative contract with the Ford Motor Co. (F) to end a six-week strike that had targeted the automaker’s manufacturing sites in the U.S.
The new collective agreement includes 25% pay increases over four years and will lift the top wage among unionized autoworkers to more than $40 U.S. an hour.
The deal also includes a pay increase of 68% for starting wages to more than $28 U.S. an hour.
The agreement that will now be put to a vote by union membership also includes reinstatement of cost-of-living adjustments, a three-year path to top wages, and other benefits.
The tentative deal still must be ratified by a majority of Ford’s 57,000 unionized workers.
Autoworkers who are currently on strike at Ford will now return to work while the union undertakes its voting process, said the UAW.
Ford said in a statement that is “pleased to have reached a tentative agreement.”
The union said gains reached in the new deal are valued at more than four times the gains reached in a previous 2019 contract and provide more in base wage increases than Ford workers received over the last 22 years.
News of the tentative agreement comes as Ford prepares to issue its third-quarter financial results after the stock market closes today (Oct. 26).
Ford’s stock has declined 10% over the last 12 months and currently trades at $11.54 U.S. per share.
