Ford Says UAW Counterproposal Is Unsustainable

For weeks now, Ford, General Motors, and Stellantis have been engaged in contract negotiations with the United Auto Workers (UAW) union, but despite both sides submitting multiple counteroffers, a deal never seemed particularly close. Thus, a strike officially began early this morning following the passing of Thursday’s 11:59pm deadline, as Ford Authority reported earlier today, albeit only at one plant operated by each manufacturer – in Ford’s case, the Michigan Assembly plant, which builds the Ford Bronco and Ford Ranger. Shortly before the strike began, Ford issued a statement revealing that it has made four offers to the UAW thus far, and received one from the union mere hours before midnight, though the automaker called it “unsustainable.”

“Unfortunately, the UAW’s counterproposal tonight showed little movement from the union’s initial demands submitted August 3^rd,” FoMoCo said in a statement. “If implemented, the proposal would more than double Ford’s current UAW-related labor costs, which are already significantly higher than the labor costs of Tesla, Toyota, and other foreign-owned automakers in the United States that utilize non-union-represented labor.”

“The union made clear that unless we agreed to its unsustainable terms, it plans a work stoppage at 11:59 p.m. eastern. Ford has bargained in good faith in an effort to avoid a strike, which could have wide-ranging consequences for our business and the economy. It also impacts the very 57,000 UAW-Ford workers we are trying to reward with this contract. Our hourly employees would take home nearly 60 percent less on average with UAW strike pay than they would from working. And without vehicles in production, the profit-sharing checks that UAW workers could expect to receive early next year will also be decimated by a significant strike. Ford remains absolutely committed to reaching an agreement that rewards our employees and protects Ford’s ability to invest in the future as we move through industry-wide transformation.”

At the same time, the automaker notes that its last proposal to the UAW “was historically generous, with large wage increases, cost of living adjustments, more paid time off, additional retirement contributions and more.” Ford’s most recent proposal to the union offered it a 20 percent pay increase, which is still pretty far off from the UAW’s recently-lowered ask of 36 percent. Otherwise, FoMoCo has seemingly met most of the union’s demands, including the return of cost of living increases, the end of tiered pay systems, pensions for new hires, and increased pensions for retirees – but not a request for a four-day, 32-hour full time work week.

We’ll have more on the UAW strike soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.