United Auto Workers (UAW) has finally confirmed the four-year labor deal from Ford Motor to avoid strike again. The union recently ended its 40-days long strike against General Motors (GM). Started from Sept. 16, the strike was the longest nationwide walkout against GM after the 1970’s 67-day long strike. 57% UAW members approved the deal from GM and the union decided to move on to the negotiation tables with Ford Motors and Fiat Chrysler for next contract extension talks.
The Detroit automaker managed to avoid strike by presenting a provisionary deal regarding labor contract on Wednesday night. The company proposed a deal which leads to a new four-year labor contract. The key factors of the deal include a giant $6 billion investment funding and nearly 8,500 US jobs creation and retention, as well. The deal also includes other terms such as health-care costs retention, lump-sum bonuses or raises per year as well as a pathway to full-time employment for temporary workers.
As per its old negotiation culture, the union follows a ‘pattern bargaining’ method to deal with these Detroit automakers. In this method, the union firstly negotiates with one of the companies as a target. Once the proposed deal gets approved and ratified by all the members, the same deal is used as template for making negotiations over a new labor contract with remaining automakers.
Currently, Ford Motors are waiting for the approval of the proposed deal by local union leaders. The leaders are expected to vote for the deal this Friday. If the leaders vote the deal and approve it, approximately 55,000 UAW members in Ford must vote for the deal. If the deal is voted down, the negotiators would return on negotiation table o there might be chances of strike. If the deal gets ratified successfully, the union will be on negotiation table with Fiat Chrysler for labor contract expansion.