Ford Motor and the United Auto Workers union have agreed to a tentative deal on a new four-year labor contract.
The union says the deal covers more than 50,000 Ford workers and constitutes “one of the richest agreements in the history of UAW-Ford.”
Terms of the agreement were not yet available but are believed to be similar to the terms Fiat Chrysler reached with the UAW. Members are now ratifying an agreement at General Motors.
The deal addresses the wage gap that currently exists between workers who were hired since 2007 and their older veteran counterparts. New hires will receive pay raises over the next eight years that essentially eliminate that gap.
The deal at Ford also includes signing bonuses, lump sum payments, and profit sharing. Workers are expected to earn tens of thousands of dollars during the four-year term.
The UAW was helped along by particularly strong automotive sales which strengthened its ability to ask for higher pay and other compensation rewards.
Ford and the UAW reached the agreement without the union having to set a strike deadline, which it did at both Fiat Chrysler and GM.