On Friday, Ford Motor Co.’s stock plummeted before Sunday’s vote by United Auto Workers (UAW) leaders for a tentative contract agreement.
Shares in Ford shed 12.25% to $9.96 on October 27 despite the strike ending after 41 days. Still, analysts predicted a slight bounce back by 0.20% to $9.98 per share in the coming session.
The UAW National Ford Council finalized the proposal and put it out for voting over the next couple of weeks. Thus, some 57,000 rank-and-file union members the US automaker employed can pave the way for battery-plant workers to join UAW.
With the proposed deal complete, UAW President Shawn Fain went on Facebook Live to announce the key provisions. It includes 26.00% compounded base wage increases with $8,800.00 cost-of-living adjustments, improved conditions for temporary workers, and retirement plan contributions.
In addition, the 4-1/2-year tentative agreement involves $8.10 billion in new plant investments and $5,000.00 ratification bonuses. Ohio’s Ford Assembly will get the most significant portion of $2.10 billion for current products and a new electric van.
Kentucky’s Louisville Assembly plant will receive $1.20 billion for a new electric vehicle (EV) and sports utility vehicle (SUV) production. Lastly, the Kansas City Assembly will obtain $1.90 billion to produce the F-150 and a new electric truck.
UAW leaders released a summary of the provisional Ford deal and the over 800-page contract after the October 29 vote.
UAW Content with Ford’s Compromise
Fain emphasized that UAW is happy with the outcome despite missing some initial goals. Their missed list includes a 40% pay increase, reducing the workweek to 32.00 hours, and traditional pensions and retiree benefits.
Moreover, Ford acquiesced to some terms beyond UAW’s preliminary objectives. Workers will progress to top pay rates in three years, and the regularization period will be cut to three months.
Furthermore, the union acquired enhanced profit-sharing and two weeks of paternity leave. Additionally, employees will enjoy increased 401(k) contributions, including an $11,000.00 company contribution for top-pay workers.
The UAW hopes to achieve the same success with General Motors Co. and Stellantis NV.
