The United Auto Workers announced Wednesday night a tentative deal had been reached with Ford, ending the strike and placing pressure on General Motors and Stellantis to reach a deal.
The tentative deal includes a base pay increase of 25% over the next 4 years. The agreement reinstates cost of living adjustments, or COLA, something that was given up after the 2008 recession. With COLA, the pay rise will elevate up to 33% on average.
The starting pay for workers now starts at $28 an hour, with the top wage making more than $40 an hour.
The UAW reserved the right to strike in the event of a plant closure, a way to prevent the exportation of jobs to foreign nations.
“We told Ford to pony up and they did. We won things nobody thought was possible,” UAW President Shawn Fain said during a video posted online Wednesday night.
Ford has already felt the relief of ending the strike. Stock prices increased by over 2% overnight.
This agreement places more pressure on Stellantis and General Motors to reach an agreement with the 29,000 striking workers.
The deal still needs to be voted on by UAW leaders and a majority of the 57000 Ford workers.