Ford Workers Vote Against UAW Agreement

(RTTNews) - The labor agreement deal between Ford Motor Company (F) and the United Auto Workers (UAW) union has been rejected by the production workers of the Louisville assembly and Kentucky truck plants, according to sources from UAW Local 862 on Facebook.

The union workers are currently voting on contracts from each of Chrysler-owner Stellantis, General Motors, and Ford, after the first coordinated strike against Detroit 3 automakers, for higher wages, better healthcare benefits, and more job security for its members, while the automaker is seeking to control labor costs amid increasing competition and a tough economic environment.

The deal was announced on October 25 and assured immediate 11% pay raises for auto workers, growing to 25% over the life of the four-and-a-half-year deal, which would have resulted in a typical wage of more than $40 per hour by 2027. Workers hired after 2007 were also set for a big boost in retirement pay which is up from the current 6.4%.

The United Auto Workers which represent about 12,000 workers between the city's two plants, said that about 55% of the production workers who had been on strike for two weeks voted against ratifying the contract, while 69% of the skilled trades workers cast votes in favor of the contract. For Ford's agreement with UAW to be ratified, it requires a consensus among the majority of workers. The inclusion of the Louisville votes lowers the overall percentage of UAW members in favor of the deal to 65%, from about 70% before Sunday, according to a UAW spreadsheet tracking the vote.

It is important to note that workers at some of the company's major plants including the Dearborn Truck plant in Michigan are yet to vote. If the agreement is ratified, it could significantly raise Ford's costs. Last month, Ford withdrew its forecast for full-year results, citing uncertainty related to negotiations with the union, while cautioning about ongoing challenges and pressure on electric vehicles.