Ford’s Chicago plant UAW workers vote to ratify the deal with the automaker. A proposed contract with Ford Motor Company (F.N.) has been endorsed by workers at the automaker’s Chicago assembly plant, the local branch of the United Auto Workers (UAW) union said on Facebook on Wednesday.
57% of votes cast were in support of the agreement, according to UAW Local 551. Ford employs about 4,500 hourly workers at the assembly plant producing the Ford Explorer.
Following the first coordinated strike against Detroit’s Big Three automakers, union members are voting on contracts from General Motors (GM.N), Ford, and Stellantis (STLAM.MI), which owns Chrysler.
The ratification follows protracted discussions between the automakers and the UAW that resulted in preliminary agreements over the past two weeks to end an expensive strike.
Throughout the deal, the 57,000 Ford employees covered by the UAW’s new agreement will get raises of at least 33%. Additionally, cost-of-living adjustments will be made to keep up with inflation.
At Ford’s assembly factory in Michigan, most employees have already voted in favor of the provisional agreement.
Previously, automakers have been cutting costs and negotiating a difficult path to produce EVs and overtake market leader Tesla (TSLA.O.). Lower margins on those cars, meanwhile, have discouraged them from pushing the move further.
Based in Dearborn, Michigan, Due to “uncertainty” surrounding the upcoming ratification of its agreement with the UAW union, Ford retracted its full-year results projection in October and issued a warning about ongoing pressure on the performance of electric vehicles.
According to the company’s earlier estimates, each car would incur an additional $850 to $900 in labor expenditures under the new deal.
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