Ford's 6-week strike wage increase, 33% including 25% compound interest for 4 years, LG Ensol excluded

Ford's 6-week strike wage increase, 40% including 25% compound interest for 5 years, LG Ensol excluded

After a six-week strike, Ford Motor Company's strike ended with an unprecedented and historic labor-management agreement that included a 25% wage increase for four years and a 33% increase including compound interest, but battery workers, in whom Korea had invested heavily, were excluded from the contract.
Shawn Fain, president of the United Auto Workers (UAW), said on Facebook on Tuesday that the automaker had agreed to a four-and-a-half-year contract with record pay increases.
“The UAW has reached a historic agreement with Ford that includes a 25 percent wage increase over the four-year contract,” Fine said. “Ford workers will receive an immediate 11 percent wage increase and will be able to secure workers’ salaries, including benefits and cost of living.” “During the contract period, wages will increase by approximately 33% to more than $40 per hour.”
“In addition to the general wage increase, minimum wage temporary workers will see an increase of more than 150% over the life of the contract, and employees will reach their highest salary after three years,” Fine continued. “The union has the right to strike over future plant closures. “I got it,” he said.
Reuters, which reported the strike's conclusion, said, “The UAW succeeded in eliminating low-wage tiers for workers at certain Ford parts plants,” and added, “This is an issue that Chairman Fine emphasized from the beginning of the negotiation process, and striking workers chanted ‘End Tiers’ throughout the strike. “He was wearing a T-shirt with the slogan written on it,” the report said.
Reuters continued: “The deal, which requires approval from union leaders and members, would be the first agreement in the 45,000 workers' strike against Stellantis, the parent company of Ford, General Motors and Chrysler, that began on September 15. “The Ford deal would overturn concessions unions have agreed to in a series of contracts since 2007, when GM and the former Chrysler were sliding toward bankruptcy and Ford was mortgaging its assets to survive.”
“We are pleased to have reached a tentative agreement with the UAW on a new labor agreement covering our U.S. operations,” Ford CEO and President Jim Farley said in a statement, confirming the deal.
If Ford's tentative contract is ratified by the union and board of directors, GM and Stellantis will also set new bargaining standards, and the contract will expire on April 30, 2028.
GM and Stellantis also said in a statement today that they are “working to secure a contract as quickly as possible,” Reuters reported.
The terms of the four-year labor-management contract announced by Ford Chairman Payne did not mention future wages and unionization at the new joint venture electric vehicle battery plant being built by battery plant Detroit Three with Asian partners. .
“Because they are owned by separate entities, the automaker did not need to include those plants in these negotiations,” Reuters reported. Payne called for assurances that battery factory wages would be similar to those at the assembly plants, and that the Detroit three combustion “We have expressed concern that UAW jobs at powertrain plants will be lost over time to non-union battery operations,” it said.
LG Ensol, Korea's largest investor, recorded a 40.1% increase in profit in the third quarter by using the Inflation Reduction Act (IRA) at its U.S. joint venture with GM to 'account for subsidies as profit before product delivery is established.' (Compared to the same period last year), but the stock price fell 3.7% in the Korean stock market.
LG Ensol's third quarter sales increased 7.5% from the second quarter of last year (KRW 7.6482 trillion) and decreased 6.3% compared to the second quarter of this year (KRW 8.7735 trillion).
Operating profit in the third quarter increased by 40.1% compared to the same period last year (KRW 521.9 billion) and by 58.7% compared to the second quarter (KRW 460.6 billion).
On the other hand, the US IRA tax credit amount first reflected in the third quarter operating profit is 215.5 billion won, excluding this, the third quarter operating profit is 515.7 billion won, and the operating profit ratio is 6.3%.
In the third quarter, LG Ensol intensively expanded and operated new production lines, resulting in a 94% increase in production compared to the second quarter.