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Ford UAW Contract Offers No Bonus To Retirees

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The tentative Ford UAW contract agreement is out for voting, with all votes due this Friday. It looks for now as if the contract will be ratified, but that could change as there are still several of the largest Ford plants that have yet to see their local unions vote. One thing that has been ditched in the proposed contract that isn’t sitting well with retirees from Ford is that the new proposition has no retiree bonuses.

The retiree bonus in the Ford UAW contract ratified in 2015 included $250 per year for four years for retirees and $125 per year for four years for surviving spouses. The GM contract that was ratified after a 40-day strike included no bonuses for GM retirees. The assumption is that the FCA contract that will enter negotiations when Ford is finished will also contain no retiree bonuses.

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Kristin Dziczek, VP of industry, labor, and economics at the Center for Automotive Research in Ann Arbor, says that any bonuses for already retired workers are permissible, but not mandatory. She says that the union can ask for those bonuses, but the automaker can refuse. A $250 bonus may not sound like much, but the big three in Detroit have more than twice as many union retirees as they do hourly workers. That means bonuses for the massive number of retired workers is a costly undertaking.

Retired workers aren’t happy that the bonuses are going away. One who started working for Ford in 1966 said that the UAW always took care of its retirees in the “old days.” Another Ford retiree says that no one said anything about taking away the $250 retiree bonus that was negotiated in 2015. UAW negotiations were more focused on current workers this go-round. Veteran Ford workers will receive $9,000 bonuses under the new contract, with temporary workers receiving $3,500.

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Source: Detroit Free Press

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Written by Shane McGlaun

Shane is a car guy with a fondness for Mustangs and off-roading.

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15 Comments

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  1. That is a shame that the retirees will not get any kind any bonus, prices go up but not any bonus. The people working there now will one day retire and the shoe will be on the other foot. They should fight for the retirees also.

    • I agree. Not easy even trying to make a decent living and we appreciate ford and all of our benefits, but Christmas time is hard and now my husband has dementia and not easy when you have to hire someone to do even small things around the house.

  2. I agree.Not to sound ungrateful for a wonderful pension and healthcare but it was nice to get a little help in December .As many have mentioned..many of us retirees take care of elderly parents and grand children.We fought hard for the benefits that the current employees enjoy.I can only hope the UNION will ask and rally for us!

  3. I can’t believe the Union is doing this to us retired. We have given our lives to ford. Ford had to hire over a hundred men a day just to keep one. The jobs were extremely hard and working 6 to 7 days there was no family time. We were a good union then. We stood up for each other. To let the union degrade us is a crime. I can’t print what else I am thinking. I know you are laughing at us now but your time is coming

  4. I have four grown up children who buy nothing but fords. Because ford needs the 250 dollars and this union couldn’t wait to throw their dad in the garbage. There will never be another ford bought in this family. That 250 dollars has already cost ford and the union about 140000 dollars. You all will pay for this and it’s not just me. Think about us when you get laid off.

  5. The retires are building an army against ford and the union who put us here. I am talking to other retires and they feel the same way. No more fords will be bought in the five families I have talked to. To the union workers at Avon lake with in a year some of you will be laid off. You can fight each other to work. See you at the local bars and listen to you all complain how unfair it is for this to happen to me. Ha. Ha

  6. i always make sure i give all my ford discounts away each year, no more, how selfish can anyone be not to help fellow retiree with a small amount of 250 dollars, and one day you will be here typing the same thing that we retirees are now, no more trying to help ford sale cars

  7. The guy in charge of ford has done what I thought would never happen. I am buying my first car from Japan ??. Enjoy my 250 dollars you creep.

  8. We will not be buying another Ford either not after what they are doing to the retirees.
    these young people are only living for the moment and not thinking about down the road. Hope they enjoy their bonuses while they are getting them. Old age is coming and sooner than they think.

  9. Merry Xmas from Uncle Henry , I wont have anything for you either. That’s my X “mas” plan . Chumping retirees will drive them to other makes . Current workers enjoy your “A” Hole plan.

  10. So sad the Xmas bonuses are no more!!! Retirees are still very important too … our past hard work was laid out for existing and future Ford Workers. Just thrown under the bus in this last ratification!

  11. wonder what the new employees would do if all retirees and family memebers stop buying ford, i have 31 family members that buy ford.

  12. Well everyone is mad at Ford for the no bonus when it is really the UAW that let us down… it is the union that is suppose to fight for us retirees…. we need ford motor company to do good for our benefits to continue… if ford goes under than so does our pensions… please remember that. We need to be yelling at the UAW.

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