Ford and the United Auto Workers (UAW) union have reached a tentative deal to end a six-week strike.
The agreement would be the first settlement of strikes by 45,000 workers against Ford, General Motors (GM) and Chrysler-parent Stellantis.
The deal still needs to be approved by union leaders and members.
If the new four-and-a-half year contract gets approval from Ford workers, it would set the standard for talks at GM and Stellantis
“We told Ford to pony up and they did,” UAW President Shawn Fain said.
Mr Fain added that the agreement includes a 25% wage increase over the life of the contract, while lowest paid temporary workers would see pay rises of more than 150% over the period.
The union also won the right to strike Ford over future plant closures, he said.
Ford CEO and President Jim Farley said in a statement: “We are focused on restarting Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant, calling 20,000 Ford employees back to work and shipping our full lineup to our customers again.”
US President Joe Biden said that he applauded the tentative deal.
“[It] provides a record raise to auto workers who have sacrificed so much to ensure our iconic Big Three companies can still lead the world in quality and innovation,” Mr Biden said.
The union put pressure on the motor industry giants by taking industrial action at the companies’ most profitable plants.
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UAW members walked out at GM’s Arlington, Texas assembly plant, Ford’s Kentucky heavy-duty pickup factory and Stellantis’ Ram pickup plant in Sterling Heights, Michigan.
The estimated total economic losses from the strike had reached $9.3bn (£7.7bn), research firm the Anderson Economic Group earlier this week.