Ford-UAW deal: Why ending the strike was important for Ford’s brand image

The United Auto Workers (UAW) union and Ford Motor Company have come to a tentative agreement, entailing a 25% wage hike over the course of the 4-½ year contract, with an initial increase of 11%.

The proposed deal is in now in UAW’s hands to ink and put an end to a nearly six-week long strike that started on September 15th. It’s a pivotal moment for both parties, as they address critical concerns of workers and move forward toward a more stable future.

Consumer perceptions of Ford took a hit during the six-week strike

Finding a resolution to negotiations was important for Ford to do, especially since there were negative shifts in consumer perceptions of the automotive brand.

Data from YouGov BrandIndex shows that people's Impression of Ford, a metric gauging whether consumers hold a positive or negative view of a brand, saw a decline in the weeks following the start of the strike.

Ford’s net Buzz score, which measures the sentiment of conversations occurring around the brand in the news, through advertising and among friends and family, also fell during the six-week strike fueled by fewer people hearing positive things about Ford and more people hearing negative news.

BrandIndex data also shows that Consideration for Ford (the percent of consumers who would consider purchasing from the brand) dipped by 6.5 points during the strike.

The agreement that UAW was able to secure marks a record pay raise for Ford’s workforce but reaching a deal also benefits Ford in terms of containing and repairing the damage the strike did to its brand image.