Ford’s contract negotiations with the United Auto Workers (UAW) started out a bit rocky after the union released a scathing video targeted at what it calls “bloated” automotive CEO pay, and it even followed up an op-ed on the topic of employee salaries from Ford head Jim Farley with one of its own. New UAW president Shawn Fain has expressed his opinion that union-represented workers deserve better and is seeking support from the Biden Administration, while Ford is looking for production flexibility amid uncertainties surrounding future demand for electric vehicles, while both sides have expressed a desire to be transparent throughout this process. However, there’s also one thing that now seems likely to happen – a pay raise for UAW workers, according to The Detroit Free Press.
An unnamed source revealed this piece of information as the UAW continues talks with not only Ford – but also Stellantis and General Motors – ahead of the expiration of its current contract in September. While no lead automaker has been designated in these talks – something the union has traditionally done as a way to set a baseline before negotiating with the other two – General Motors is expected to offer its workers a pay increase.
While GM president Mark Reuss recently hinted at the possibility of giving the company’s UAW workers a raise, saying “we believe our manufacturing employees should be recognized and rewarded and should share in the company’s success,” the same wasn’t necessarily true of Ford CEO Jim Farley. “We’ve heard some claims that our wages have remained stagnant, but the truth is that over the past eight years, UAW-Ford employees have received wage increases plus annual inflation bonuses of $1,500 per year, which exceeded the cumulative compensation gains they would have experienced under a straight cost of living adjustment,” Farley wrote in his recent op-ed.
However, while GM appears willing to give its UAW workers a pay raise, it’s reportedly not as enthusiastic about meeting another one of the union’s demands – the return of a cost-of-living adjustment. This benefit disappeared during the recession of 2008-2009, and is one of the three main demands the UAW has revealed thus far, along with stronger job security and the end of tiered pay systems.
We’ll have more on Ford’s contract negotiations with the UAW soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
Comments
This is totally asinine. Unless the entire population of the US gets an equivalent raise in wages, all of this is moot. All vehicles are beyond reach of the average citizen, worldwide. Raising UAW wages only compounds the problem. How about this…
Lower the wages AND the price of your products. Everything can’t keep going up and up. Learn to live like the average citizen.
I’m a skilled worker, and we have had ONE pay increase in the last EIGHTEEN YEARS!! Still making basically what we did in 1998!!!
Pay has remained stagnant while the car prices has increased. Where is the extra money going? Look at the UPS contract and many other places out there. Cat, John Deere, Kohler, railroad, just to name a few. Accounting for down weeks for covid and bonuses that many were ineligible for because they didn’t meet an on purpose threshold amount of seniority. People that have negative stuff to say crack me up. They are either jealous for who knows why.. Their are plenty of jobs that pay UAW wages or more! Either that or they just refuse to get off moms couch to look for a job. Also do everyone a favor, if you don’t know what you’re talking about, please do not speak. It just makes you look dumb.
I’m making around 5 bucks more per hour than I did when I topped out in pay and that was 22 years ago. 25 for the company as a whole. The median avg. Salary in the state of Michigan is 58,000. If you take are base salary that is what the avg. Ford uaw worker makes per year. It’s not are fault the company is charging these insane amounts on new vehicles. We can barely afford them ourselves working there so get your facts straight. We go in and bust our butts in hot factories do strenuous labor and argue with management when we find defects because they ate worried about not making their numbers for the day. All while they keep dumping more work on us. New people come in don’t even work a week and quit.
I was a Skilled Trades worker 8n the pre bankruptcy days. Now retired, in those days we always tried to negotiate a raise for retirees, apparently not anymore! I realize the pension is no longer paid directly by GM, but certainly some provision can be made for those who “did their time”!
I think a wage increase is a drop in the bucket compared to the draconian regulations that the Biden administration is pushing on the industry. GM estimated that it will cost the industry between $100 and $300 billion in fines.
GM has got the money pay the workers what they want don’t give it all to Mary bar Mary bars got enough money paid a retiree what they want give them a raise because they’re the ones that made General Motors what day God and what they have for the future give them all what they wants for I have been working for GM for 56 years getting ready to retire I need my retirement pension and cost-of-living give us a good incentive to get out of GM and live our life that we gave for the GM family we build GM and keep GM going to give us all a good incentive pay raise to get out
$1500 inflation bonus per year = .78 cents an hour per year (stagnant). BEFORE taxes, that’s not even equivalent to inflation MUCH LESS than “exceeding comp gains under straight COLA.” Farley won’t last much longer with with 5th grade math skills
Anyone talking about these workers don’t need a raise or make to much money evidently hasn’t worked in the plants of the Big 3 automakers!! These corporations are making Billions and giving CEO’s millions of dollars and shares in the company’s while these workers haven’t had Cost of living raise since 2007 or any significant raise. So when your on your feet over 10 1/2 hours in a tin can and its 95 to 100 degrees outside on a assembly line which is moving and they don’t want that line stopped!! and when u have to turn on a light to have someone relieve you so u can go to the bathroom and sometimes it can take up to 30 minutes SHUT THE HELL UP WHEN U HAVE NO CLUE OF WHAT ITS LIKE IN THE PLANTS!!
Amen and I’m with you brother they have no clue
The anti-union crowd is definitely clueless on this issue, since they have never worked inside an auto plant and probably would not last a week if they worked inside an auto plant. The anti-union crowd is also very naive on executive compensation.
Ford CEO made 20.9 million last year look it up. That’s where all the money goes to, the executives. That’s why the vehicles costs so much. For their private jets and $45000 watches.