The United Auto Workers union reached a tentative labor deal with Ford on Wednesday night, as the strike at Detroit automakers finished out its sixth week, UPI reports.
What’s going on: “Ford, in a statement late Wednesday, said it was ‘pleased’ a new deal had been struck, and that its 20,000 Ford employees were being called back to assembly lines as it works on restarting its Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant.”
- The agreement—which has not yet been publicly released and still needs approval from local UAW leaders—follows back-to-back walkouts earlier this week at auto plants owned by other manufacturers in Texas and Michigan.
- If UAW leaders, who will convene in Detroit Sunday to vote, OK the deal, “the decision to ratify … will fall to [UAW] members.”
Strike effects: The economic impact of the strike has been significant. As of Monday, the auto industry had lost approximately $9.3 billion as a result of the strike, which began Sept. 15, the Michigan-based Anderson Economic Group estimated.
The NAM says: “It’s great that this is potentially settled and that we’re going to be able to continue to make things in America,” NAM President and CEO Jay Timmons said this morning on “Squawk Box.”
- “The strike was particularly difficult for smaller manufacturers who are part of the supply chain [and had to make] some pretty tough decisions, either put production on hold, lay off workers, perhaps even chill some invest decisions … so we’re happy to see that there’s forward movement.”