Proactive Investors - Ford Motor Company (NYSE:F) said that although “significant progress” has been made in some areas, there are still “significant gaps” to close on key economic issues as works to reach a new labor agreement with auto workers represented by the United Auto Workers (UAW) union.
“In the end, the issues are interconnected and must work within an overall agreement that supports our mutual success,” Ford said in a statement following negotiations over the weekend.
The UAW began simultaneous strikes at one assembly plant belonging to each of the Detroit Three carmakers – Ford, General Motors Company (NYSE:NYSE:GM) and Stellantis NV (NYSE:STLA, EPA:STLA) – on September 15.
It has stepped up strike action against General Motors and Stellantis to 38 parts distribution centers across 20 states as talks have stalled. Ford has been spared from the expanded strike action, for now.
Across the border to the North, the carmaker has successfully negotiated and ratified a new three-year agreement with Unifor, which represents Ford’s Canadian auto workers.
The deal includes a 15% wage increase over the lifetime of the agreement, a C$10,000 ratification bonus for full-time permanent employees and C$4,000 for temporary employees, improvements to retirement programs including a raised pension benefit rate and increased contributions, and the reduction of the new hire wage progression period by 50%.
Ford shares dipped slightly in pre-market trade, down 0.2% to US$12.40, after closing up 1.9% on Friday on optimism the automaker was nearing a deal with the UAW.