Contract talks between Ford (and its Detroit Big Three counterparts) and the United Auto Workers (UAW) union began weeks ago, but thus far, have moved along rather slowly in spite of calls for the two sides to work together to reach a new deal and avoid a strike. The UAW is seeking a rather substantial 40 percent pay increase for its members, along with the end of tiered pay systems and the return of a cost-of-living adjustment, and has already voted to authorize a strike if necessary – though salaried Blue Oval workers may step in if that happens. Now, Ford has officially revealed its first UAW contract offer, accompanied by a statement from CEO Jim Farley himself.
For starters, Ford is offering the UAW a nine percent general wage increase over the span of the entire contract, which is the largest since its 1999 deal with the union. The bulk of that increase would take effect in the first year of the contract, along with six percent in lump sum awards. This would result in a wage increase from $78,000 on average in 2022 to $92,000 in the first year of the contract.
In terms of health care benefits, UAW workers would receive coverage worth $17,500 and additional benefits worth another $20,500 in the first year, which would keep these workers in the top one percent of all employer-sponsored medical plans for lowest employee cost sharing. This also means that full-time, permanent employees at the top of the pay scale can make upwards of $98,000 from wages, a cost-of-living adjustment bonus, a ratification bonus, profit sharing, and overtime in the first year of the contract.
Perhaps more importantly, Ford’s contract proposal would eliminate wage tiers – a sticking point for the UAW – and it also accelerates the grow-in period to reach the top wage rate by 25 percent while delivering a 20 percent pay increase for temporary employees and giving those employees the same ratification bonus that permanent workers receive.
“This would be an important deal for our workers, and it would allow for the continuation of Ford’s unique position as the most American automaker – and give us the flexibility we need within our manufacturing footprint to respond to customer demand as the industry transforms,” Farley said. “This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing. But we will not make a deal that endangers our ability to invest, grow, and share profits with our employees. That would mortgage our future and would be harmful to everyone with a stake in Ford, including our valued UAW workers. Bottom line, we believe there is a path to succeed together in what is the most competitive and fast-changing era in the history of the American auto industry.”
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 offer isn’t terrible, but it’s far from good. Wages need to be way higher and there needs to be repercussions for product reallocation. A lot still needs to improve with the offer before it’s going to get approval.
It is Terrible. Doesn’t even cover inflation
Stop making retirement plans that reduce benefits when social security kicks in. Our SS should be in addition to our pension.
Car/Truck prices going up.
I just paid 80 grand for my f150. I guess my next one will be over 100k. At that price it better be able to tow 20000 lbs with a 5000 lb payload.
Labor only accounts for 5% of your F-150 msrp. It’s the manufacturer gouging you not the labor. You can easily buy a F-450 for 80 grand if you really need a truck.
I would be willing to bet it’s more than 5% by the time you add in benefits and retirement. It’s probably more like 15% to 20%. And yeah that’s crazy to pay $80k for an F150. I didn’t pay but $52k for a F350 XLT Crew Cab with the 7.3L.
Employee costs generally account for 5%-7% percent of every vehicle and that includes everyone from the CEO to the newest hourly employee. The math has been done and is available for anyone who is interested in looking it up. All large companies and corporations are artificially raising prices for increased profits. These companies make billions every year and can afford to pay their employees. If you can’t see that, then I feel bad for you.
Your right it’s the manufacturer gouging but that’s not going to change an increase to the workers they’ll just add it to the product that’s just how it is. Eventually they will became to expansive to buy and you can come work with me at minimum wage lol
By my math you paid about 4k more than you would’ve if every employee was replaced with a robot. Glad to hear you’re so prosperous you can afford an $80,000 truck (I can’t), but despite that you’d be fine with destroying literally a million middle class families when the supplier chain that we depend on is taken into account in addition to the Ford jobs themselves, in order to save 4%, a few grand off your nearly 100k purchase. What a noble, fine person you are.
I don’t think 5% of the companies costs are the reason.
What about the retirees?
I am wondering the same thing, some of the worker’s turn thing’s down for us retirees with out thinking they will be in the spot we are in now
Sadly, many of the new hires don’t even care about, and even resent, the legacy workers. They could care even less about the retirees.
Sure, Ford could be pressured to pay even more, but then they’d have to turn even more jobs over to computers. Sorry UAW, can’t have sky high wages, job security, and huge retirement benefits. Pick two.
Stand with your local UAW who ever it is, it’s better for all of the economy.
For all the UAW malcontents, why haven’t you quite and received better jobs elsewhere?
The younger generation are definitely starting to go that route. The plant I work at can’t keep new workers, heck can’t even get them to apply and I’ve heard that same thing from friends and family at other plants. All of the auto manufacturing companies are having a hard time finding good people, foreign, domestic, suppliers, across the board. Young people have more work options than ever before, heck retailers and fast food jobs are paying similar wages to manufacturing, at least in my city. If these manufacturing companies want to survive, then they have to do something to get people in the door. Moving overseas is quickly becoming more trouble than it’s worth. But time will tell.
Because unions set the standard for wages. We just voted out corrupt leaders who were paid under the table, by the auto companies, to give us bad contracts. This time the leaders can’t be bought.
… quit… note quite
… not… not note
Find a new job then if you don’t like the pay. Simple as that
Ford contract looks really good…this is a really good deal yall better take it because being greedy will lead to near future of plant closure here in Michigan and being moved to where the company can stay competitive a perfect example to look at is G.M. see how they caved in when that strike happened but closed and moved plants…DON’T BE GREEDY yall better think and save yall jobs FORD employees and accept that contract
Where are they going to move? China is just starting to see their population crisis, their government can take over the plants whenever they want, they steal/copy all the technology they can. So that’s not looking good for the future. Mexico doesn’t have the infrastructure, the cartels have been gaining strength and holding plants for ransom and surly are demanding payments for operating in their territory. So that’s not looking great. Europe, maybe but the wages are higher, taxes too, plus transportation costs much more. Africa, China is looking to them for their future manufacturing, plus no infrastructure. South America has people leaving in troves and you get all of the other countries issues rolled into one. Maybe I’m missing something, but I’m not seeing a lot of places these companies can go.
Greedy! You don’t get it. Last year at Ford I only grossed $31,000 for the whole year. That was with Perfect attendance and a little overtime. That is Gross, as in before taxes. I was barely able to pay my house payment and utilities each month. Ford is only offering a 2.25% raise each year. Don’t think they are offering us a 9% raise because they are not. That 2.25% raise would only be $600 more per a year in my case. That is only $11 a week. So before you say greedy you better do more research and see how much the workers really are getting paid. We get paid the same rates as 15 years ago. Ford has been lying about how much we make. I could get more money working a GE and have a easier job.
So in response to your “DON’T BE GREEDY” How about you “DON’T BE GULIBLE”!
You obviously don’t understand inflation because this is a horrible deal.
Need more vacation time.
Not being funny but when you got a job at a plant what skill set do you bring with you does Ford train you. Union guys will be making more than plumber’s heat & air guys and the electrical trades. These guys have e to go to school and pass trade test. Where will it stop
9% wage increases over 4 years is a joke. I just took my son and 3 of his friends to McDonald’s and it was $60. I didn’t get anything myself just the 4 kids. I’m a business owner of 4 local car washes in Detroit. I just gave all of my employees 35% pay raises in April because of inflation I also agreed to cover their loss pay on rain out days. And their was no union involved asking me. I did it because I know it was needed and it’s the right thing to do. The automakers are greedy. The CEO positions have raised their own pays by 46% and want to give laborers a 9%increase is a slap in the face, especially after they took pay cuts to keep the company viable in the depression. Pay these people! If not I hope they strike and the company doesn’t make another dime.
Exactly
All you uneducated fools out there that’s dissing the UAW for wanting more money, let me educate you. Ford CEO has been profiting millions of dollars. I see some of you complaining about paying 80 grand for an F150. That’s your own dam fault for paying that to begin with. I Stand with the UAW.
Highly educated and experienced. The business costs incurred by the UAW is an open door for the Chinese. A little history… bad quality and uncompetitive cost opened the door for the Japanese 5 decades ago. The Koreans waltzed in 20 years ago. Didn’t the shortage of PPE and resuscitators 3 years ago teach us anything about being overly reliant on imports!?!?!?
How about a increase for retirees?
Yeah what about the retirees? After they retire they are forever forgotten about.
Amazing how the cost to live goes up every year and automotive workers wages stay the same. These new ev vehicles will never sell because no one can afford them. For every one that’s hating on workers getting more money remember auto workers have no say in what we build.
Haters are gonna hate. The UAW has always been hated on by jealous outsiders. Unions paved the way for all Americans to have the best working conditions possible. I’m a divorced father of 2 children with 28 years. I drive a 2012 Chevy Cruze with 240000 miles and a house I can’t afford to do repairs on. If you want to call us entitled or spoiled, you are only spewing hate based on your own formed opinions. There are 1000s of higher paying jobs out there that don’t do damage to the body like automotive factories do. We went 15 years without a raise and made many concessions during that time. In the 90s our wages and benefits were more in line with the Cost of Living. Now it’s time for them to bring us back up to that level. Most auto workers don’t have a pot to pee in unless overtime is abundantly available. Nowhere else can you take a $20000 paycut from one year to the next because overtime is the only way to increase your yearly income. More hours equals more damage to the body and more time away from the family.
In Solidarity
Proud UAW member
Exactly. These guys are either not very intelligent or they are company trolls.
I would like to see the big threes shut down operations for 31 days reopen under a new name and eliminate all the union workers they will be begging to go work for $15 an hour to $20 an hour and wish they didn’t listen to the greed of the Union the only one that’s really benefits is the greedy Union eliminate the unions cost of items will come down significantly my uncles work for Ford and they have been tabling that to shut it down and open up under the new blue oval and I hope they do it