United Auto Workers (UAW) members at Ford and Stellantis have voted to ratify a tentative record setting labour deal, Reuters reported.
The report said the deal had the support of about 68% of Ford and Stellantis members voting.
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The votes lock in the UAW’s tentative agreement with the Detroit Three automakers until the end of April 2028 which includes a 25% increase in base wages and will cumulatively raise the top wage by 33%, compounded with estimated cost of living adjustments to over US$42 an hour.
GM workers has last Thursday voted to approve the deal with about 55% of nearly 36,000 members in favour.
Stellantis, Ford and the UAW did not comment to Reuters.
The deal includes a $5,000 bonus and an 11% immediate pay hike upon ratification. The contract also hikes wages of current temporary workers by 150% by 2028 and will make them permanent employees.
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By GlobalDataThe agreement also cuts the time needed to get to top pay from eight years to three years.
The new contract followed an unprecedented six week campaign of coordinated strikes at the Detroit Three automakers, the news agency noted.
Ultimately, the union was able to clinch record pay hikes for auto workers after years of stagnant wages and painful concessions following the 2008 financial crisis.
The UAW now plans to turn its focus to organising non union auto factories operated by foreign automakers and Tesla, Reuters said.
Hyundai Motor, Toyota Motor and Honda Motor have all announced significant wage hikes for US factory workers after the UAW contract deals were announced, the report noted.
Ford has estimated the new contract will add $850 to $900 in labour costs per vehicle, Reuters added.
