Ford agrees to 25% wage hike in the US to end strike

With cost-of-living adjustments, the anticipated top wage will rise by 33%, exceeding $40 per hour.


The US-based automobile company, Ford, has reached an agreement with the United Auto Workers (UAW). Under this contract, the automobile major has committed to a 25 per cent raise in hourly pay as per a contract lasting more than four years. When cost-of-living allowances are added, the top wage rate will increase by 33 per cent, taking it to $40 an hour.

This deal now requires the approval of the UAW leadership, which will be determined through a vote by the 57,000 US hourly workers at Ford. This process may take a few weeks.

The UAW had been demanding a 40 per cent raise and a 32-hour workweek.

Ford has already agreed to cost-of-living allowances, similar to dearness allowance in India. The company has also agreed to promote temporary workers to full-time roles. The current initiative aims to bring the workers under a top-wage structure.

This agreement will enable Ford to restart its plants and recall 20,000 workers to work.

The strike called by the UAW involved 45,000 workers at eight assembly plants and 38 parts distribution facilities.

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