Oct 31, 2019

Ford and UAW reach fast deal with no strike

Joann Muller

Photo: Bill Pugliano/Getty Images

United Auto Workers union leaders said Wednesday evening that they had reached a proposed tentative agreement with Ford — just five days after autoworkers ended the longest nationwide strike against General Motors in half a century.

Why it matters: Negotiations had been ongoing at Ford even during the GM strike, so when that work stoppage ended, the deal at Ford came swiftly without any labor disruption. UAW leaders indicated the contract terms are similar to those reached at GM.

"The pattern bargaining strategy has been a very effective approach for the UAW and its members to secure economic gains around salary, benefits and over $6 billion in major product investments in American facilities, creating and retaining over 8,500 jobs for our communities."
— Rory Gamble, UAW vice president, in statement

What to watch: Local leaders from around the country will review details of the proposed agreement in the coming days. If adopted, they'll refer it to rank-and-file union members for ratification.

  • Then the focus will turn to Fiat Chrysler Automobiles, which is in talks to merge with France's PSA Group, parent of Peugeot.
  • It's not known how the uncertainty of that global deal could affect U.S. labor talks.

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Fadel Allassan

UAW votes in favor of new contract with Ford

United Auto Workers union members picket at the General Motors Tech Center on Oct. 25 in Warren, Mich. Photo: Bill Pugliano/Getty Images

The United Auto Workers Union said its members voted to approve a four-year contract with Ford, Reuters reports, after reaching a tentative deal in October.

Why it matters: With 56.3% of Ford’s hourly workers voting in favor of the deal, Ford will avoid a strike like the six-week work stoppage that cost General Motors nearly $3 billion earlier this fall, per Reuters.

Go deeperArrowNov 16, 2019
Orion Rummler

UAW president to take leave of absence during corruption probe

Gary Jones in July 2019 in Detroit. Photo: Bill Pugliano/Getty Images

United Auto Workers President Gary Jones will begin a leave of absence on Sunday in the midst of a federal corruption probe, CNBC reports.

The backdrop: Twelve people have been charged in the ongoing investigation as of this week, per CNBC. UAW and General Motors approved a four-year labor contract on Oct. 25, ending the first U.S. auto strike in 12 years. Five days later, the union reached a tentative agreement with Ford Motor Company, as well.

Go deeper: 40-day GM strike ends with new labor contract

Keep ReadingArrowNov 2, 2019
Marisa Fernandez, Joann Muller

General Motors sues Fiat Chrysler alleging union bribes

General Motors' world headquarters. Photo: Paul Hennessy/SOPA Images/LightRocket via Getty Images

General Motors filed a lawsuit on Wednesday against Fiat Chrysler Automobiles, alleging its competitor was involved in racketeering by paying millions of dollars in bribes to corrupt the bargaining process with the United Auto Workers union, likely costing GM billions of dollars.

The big picture: The suit, filed in U.S. District Court in Detroit, aligns with the ongoing federal probe into corruption among some of UAW's top people and FCA's involvement. GM's accusation also comes as FCA and UAW are negotiating a contract fresh off a six-week strike at GM. Meanwhile, FCA is working on a planned merger with French automaker PSA.

Go deeperArrowNov 20, 2019