UAW-Ford Deal Encompasses $8.1B In Investment And $5K Ratification Bonuses

Local United Auto Workers (UAW) union leaders gave the green light to a tentative agreement with Ford Motor (NYSE:F). The deal involves $8.1 billion in new plant investments and a $5,000 ratification bonus, among other economic benefits.

What Happened: The 4.5-year tentative agreement will now be presented to 57,000 UAW-Ford members for regional informational meetings and voting. The timeline for voting completion has not been disclosed, reported CNBC.

UAW president Shawn Fain and Vice President Chuck Browning released a joint statement.

“We send this contract to you because we know it breaks records. We know it will change lives. But what happens next is up to you all,” the statement read.

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The agreement comes after union strikes against Ford, General Motors (NYSE:GM) and Chrysler-parent Stellantis (NYSE:STLA) when deals could not be reached before the Sept. 14 deadline.

Some notable investments in the deal include $2.1 billion for current products and a new electric van at the Ohio Assembly; $1.2 billion for a new EV at the Louisville Assembly in Kentucky; $1 billion in the Kansas City Assembly; and $900 million for the F-150 production and a new electric truck.

The agreement also includes a 25% wage increase, with an 11% increase upon ratification, followed by 3% increases for the next three years and a 5% increase in October 2027. The raises and benefits such as expectations of $8,800 for cost-of-living adjustments cumulatively raise the top wage to more than $40 an hour.

Despite the record deal, it fell short of some of the UAW’s initial goals including a 40% pay increase during the terms of the deal, a 32-hour workweek, traditional pensions for all workers and other benefits for retirees.

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