Earlier today, Ford revealed its very first contract proposal as it aims to negotiate a new deal with the United Auto Workers (UAW) union, one that included a total of 15 percent in wage increases, additional health care benefits, and the elimination of wage tiers. Ford CEO Jim Farley noted that he believes this deal is a good one for both sides, particularly as FoMoCo enters a new era of uncertainty surrounding the future of all-electric vehicles and the labor required to produce them. However, UAW President Shawn Fain doesn’t agree, and just released a response to Ford’s contract proposal.
“So far, the only company that has given us a response is Ford,” Fain said. “We met with the company on Tuesday and I wanted to take the opportunity to go through their proposal tonight with all of you. Just as a reminder, we are living in a golden era for the Big Three. Ford’s revenue and profits are surging. Ford made over $10.4 billion in profits in 2022 and is on track to surpass that in 2023. Those are profits created by our hands. Our dedication. Our sacrifice. And those profits have resulted in unparalleled gains for company executives and rich shareholders. In fact, Ford CEO Jim Farley has said that Ford is entering ‘the most promising period for growth in Ford’s history.'”
There are a variety of issues that Fain and the UAW have with Ford’s proposal, including the fact that it is only offering a nine percent increase in general wages, while the union is seeking a 40 percent jump. Additionally, while the UAW is looking to put a cap on the use of temporary workers, obtain cost of living adjustments, and eliminate all pay tiers, Ford responded by largely ignoring those demands, while also leaving a six-year progression to top pay, with no pensions or retiree healthcare.
“Ford’s wage proposals not only fail to meet our needs, it insults our very worth,” Fain said. “If Ford thinks we will accept a single digit pay increase and no COLA, then I hope these shareholders know how to work on an assembly line, because those are going to be the only people left to build cars come September 15th.”
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
UAW is absolutely selfish… this is what did in other heavy industries in this country. It’s a “me-me-me” mindset without consideration of the ramifications to the entire country.
Get ready for more Mexican and Chinese built Fords now.
Your comment is just blatantly wrong.
The industry may or may not go abroad. However, if you have not heard of AI, or robots, then you are in a hole. Boston dynamics and others are making robots capable of working with AI. Which can easy surpass human ability. The US population at large doesn’t really want this right now so it’s on hold until enough Americans give in. Then I hope that all your 400,000 plus UAW have enough set aside to retire on. And enough to take care of thier sons and daughters that would have worked at the same company as mom and dad. Except due to unreasonable wages for folks doing the simplest of task got greedy. Mr UAW says 17 is how much a new employer makes. That is really good, and after six months how much. Post the wage schedule online. Let everyone know how many assembly line workers are making $56 or more an our. Many more than those making $17. Not to mention that your expectation is that all your members vote Democrat. Which has the least desire to pay US Service members anything near $17 an our. Everyone deserves a living wage. For an assembly line worker to make more money the the highest paid enlisted person in the military is pretty amazing and you want that pay for those union workers to go up by 46%. How about striking for a good reason? Like demanding that the brass lowers the price of cars so that people can afford them. Like maybe those services members that make so much less than $17 an hour. You sell to your members that you can get more and they say ok. Be a leader for America.
Personally if I ran the big three I would send recruiters to every military base in America and offer anyone leaving the military and is willing to work a temporary place to live, pay a stipend to move them. Starting pay equal to what they are currently making with guaranteed pay increase to your current UAW workers over the next 5 years.
The beg you to strike and bid you farewell in five months as you go bankrupt. Paying 100,000 plus $500 a week for fuve months will do that. Then I wouldn’t have to worry about the new employees being harassed by Union mobsters. Because they would not want anything to do with recently discharged service members. Stocks would drop over that five months so your members would have even less in their 401ks. They would want to come back, they would beg to come back. They would never come back. Seriously that you think $17 an hour for six months is so bad. Yet you keep the men and women who chose to defend you on food stamps.
It isn’t likely that Ford is going anywhere abroad, at least any time soon. The reasoning for that is because Ford is taking out billion dollar federal loans and getting incentives from the US government for the eventual EV transition. I don’t mean to sound insulting to your opinion of $17 an hour being a good wage, but 2010 called and wants their logic back. Covid came and changed a lot of companies view compensation. How is $17 an hour starting off, for a maximum of two years, a better starting wage than working in fast food or pretty much anywhere else offering $20 an hour? Look, I can’t really comment on a military veteran’s experience in this country. But what I can comment on is that these major corporations are the greedy ones. With labor being only 5% of the cost to operate, it makes no sense why we (the UAW) shouldn’t ask for more. We bailed out the big 3 in 2008 by taking, what were supposed to be temporary, concessions. We simply want to restore what we once had and this is the time to attempt to do it. No excuses. Also, riddle me this. Why is it that Jim Farley openly admits to lowering the price of the Lightning due to supply and demand? It isn’t labor. It isn’t the UAW. The corporations are charging customers whatever they want because people are willing to pay it for some reason. I hope things change for the better. For us and for the USA.
U go get on the line then u have no idea how it feels to lose time with your children for years because u work 6 days a week every week mandatory
I call BS.
Who pays for all these benefits ,the buying public!?!?!? Ford will send production out of the country!!
The cost of labor for Ford is around 5%. Have you noticed that the price of Ford’s entire lineup has been steadily going up even during non contract years? It isn’t because of us (the UAW). It’s because people are paying insane amounts of money for brand new vehicles.
No doubt they have the strike posters all printed up, stapled to sticks & ready to fight for what isn’t THEIRS!
Like little children that have parents who don’t care, the child screams “Gimme, Gimme, Gimme!!!”
I say, let them strike, Ford can bring in their salary employees & let them have fun with numerous breaks, long lunches.
No matter strike or not Fain gets his salary…which is $156,000 plus kickbacks.
It isn’t so much the fact that we have the “gimmie” attitude. It stems from the fact that we have workers starting off at $17 an hour, no rights to profit sharing as a temp, reduced benefits, and definitely do not have any luxury of long breaks or lunches. Not entirely sure who’s going to protect those salary workers when production is scraping by at a massively reduced rate during a potential strike. Most of the salary workers that I know get cussed out by their bosses for things they have no control over.
Amen
Farley needs to get paid MORE
He should get a bonus for being 1st place for most recalled automotive brand.
No reason Ford employees shouldn’t get the same contract that John Deere got
Preach it loud for the people in the back!
30-yr retired Ford engineer here (and Ford shareholder). Would absolutely love to supplement my pension and SS check with a 3-month gig on the assembly line at current UAW wages. Yes, I have plenty of plant experience. Confident I could be performing any of the line jobs with quality after about 8 hours of training….
40% Wage Increase? He needs to be drug tested to see what he’s on!
The elephant in the room is going to be the work force required to manufacture a mostly all EV product. The smart money is on about 60% of the current staffing. What’s the UAW going to do then?
Hard line and tuff talk is not the stance that will lead to a satisfactory contract. UAW has concerns to be addressed. Ford stock still not reflective of the companys’ true value.
Hugh union as is the UAW have an actual effect on the US inflation and economy.
Common sense must rule. Both sides need look no further than our dysfunctional Federal Government to see were a lack of compromise sucks!
Our dysfunctional government is the one that’s gumming up the works by trying to shove EVs down everyone’s throats. A majority of the public does not want them and companies are blowing billions on them whole letting quality and product lineup suffer.
Ford is competing with tesla who has no union and lots less cost. In the world governments ev push the big 3 maybe closed and everyone out of a job.
The union sees the handwriting on the wall – EVs are going to eliminate a large portion of their membership and they know it.
EVs are going to eliminate a portion of the OEMs. Can’t build an “all electric” lineup when the public is not ready for them. Unfortunately gm and Ford have become woke social organizations that build vehicles on the side.
Imagine if the horse and buggy fans said Ford was crazy to make a ICE vehicle.
The ICE vehicle was a step up at the time. EVs with their larger up front cost, limited range, long charging times, and limited charging infrastructure is a step backwards.
Someone should remind Mr. Fain that this isn’t the 1970’s and the US Auto Manufacturers aren’t the only game in town. Why do the imports select the Southeastern part of the US for their factories?
I wonder…..
Also Mr. Fain, if Ford stockholders are getting “rich” on their investment, why don’t you make a stock incentive program for UAW members one of you demands?
Ohio and Indiana, as well as Canada are not in the southern US.
My income still basically frozen since I retired in April 2000. We need COLA on pensions.
I got 8% on my S.S. last year after how many years, and you’re pushing for 40% plus other benefits…
Go cry me a river!!!
8% isn’t bad. The big 3 got 6% over
4 years last contract. You must aim high and hope for something in the middle. It’s called negotiations!
Try not to drown in all that jealousy. ; )
How can they possibly compare themselves to the CEOs…..they are in a different league.
How also are those folks able to reject $92000. per year income offer?? I need my
masters degree to make close to that amount!!
Because, Hugh, we know we can get better offers from the Big 3. Nobody ever accepts the first draft of any contract negotiations. It isn’t likely that the next draft will be less or worse than what is currently being offered, but it could. We are willing to take that bet.
As a shareholder, I would be thrilled to work during the strike to strengthen Ford’s bargaining position. I take Fain’s comments personally – I do have real manufacturing experience and I bet a lot of other shareholders do as well. Further, I want Ford and US Manufacturing to succeed. The workers who receive the paychecks aren’t more important than the customers who make the payments, and if we don’t maintain that balance the customers will do it for us by choosing Hyundais.
As a worker who receives one of those paychecks, I would never buy a brand new Ford. They have priced themselves out of range for the average worker. Who wants a payment of $600 to $700? There are more and more Hyundais and Kias in our parking lot
This is exactly why the workers need to be paid more. Starting off at $17 won’t even qualify you for a new vehicle without a massive down payment.
believe it or not, people actually do live off $17 an hour and no benefits. maybe they shouldn’t be living beyond their means. and as for not being able to afford a car they make, that’s a bunch of BS. again, plenty of people who make $17 an hour can afford a reasonable car payment ($300) with only tax, and title due at signing also considering they get a-plan.
What are you even talking about? Do you hear yourself?
Your unwarranted assumptions expose your ignorance of the plight that every day workers face due to egregious price gouging.
You’re telling every day people who just want to stop barely scraping by, meanwhile the rich executives are making up to 300x what their employees are.
Peasant mentality
yes, I hear myself perfectly. I am a everyday worker and can comment about this. you all face the same issues and concerns the other $17 an hour with no benefits face. You are no different then the everyday people. why do you think you all deserve a 6 figure 32 hour workweek? is it because you work for the Big 3?? so what…everyone’s job is just as important as your job. as for the executive team, that’s what they are executives who should make the big bucks. they are the ones running the company. and in case you forgot, all companies are like that, even family owned. if you want to make their salary, then work for it! but to demand their pay, it’s ignorant. Ford offered a good contract and to turn down $92k a year just to build a car is greedy. that’s what you all proved, your greed!! so sad…so when you all receive your 6 figures and the consumer does not buy your product resulting in layoffs, just remember…your greed caused it.
greed mentality
For starters $17 /hr is a starting wage. Show the wage scale. Say how much you make. Say how much you make /hr after working 60hrs. You know the difference between 41 – 60hrs and 51 plus hours. You won’t post it because it’s a stupid amount for assembly line workers. You guys are bought and paid voters of the democratic party which is what this is all about. Give us more money so that we can give it to pro union politicians. The fact that y’all get on here and tell have truths (equal all lies). Expect that everyone simply says “oh, my goodnes, it’s so wrong what’s happening to you poor things”. Sorry, again everyone deserves a living wage and the bosses are paid too much. However your argument that they are paid way to much for what they do so we deserve to be paid way too much for what we do, is ridiculous.
$680/week isn’t very much, especially with no benefits. Good luck with a car payment on top of a mortgage, taxes, etc.
I think a lot of what is missing here is the fact that Ford and gm management are a lot to blame for the current situation. The UAW had no input into the design of failed products like the Ford Five Hundred, the Lincoln lineup post 2000, the Ford Freefall- er Freestyle, etc. Nor did the UAW decide to abandon the sedan market, drop the Mercury brand and water down the Lincoln brand were it is no longer viable. While there are a lot of issues with the union, the union was making more money inflation adjusted when Ford was making record profits in the 1980s and 1990s.
The crooked and clueless politicians with their draconian regulations are to be called out as well. The same worthless idiots that messed up this country are telling the automakers what to build when they do not have a clue of what they are talking about. Upper management is to blame as well for pandering to these clowns and practicing virtue signaling by shoving down customers throats electric vehicles that most people have no interest in. It should be their job to stand up to these politicians for the good of the company and its customers.
Ford’s offer seems very fair to me. Is the UAW trying to kill the automaker? Ford’s operating costs are killing them, giving Fain everything he wants will be a disaster for the company.
Ford has an obscene amount of money. Plus, the US government keeps granting Ford loans for their EV endeavors. I highly doubt that what we are asking from Ford would put the company in any sort of financial hardship.
When you build 1200-1400 vehicles a day, and 20-40 of those cover hourly workers pay for the WEEK and the rest is profit, then paying your employees isn’t the problem. Pay is 4-10% of the cost of the vehicle. Quality starts at management, and if it makes sense Ford don’t do it, they’ll shoot themselves in the foot before they listen to a line worker, Chris Farleys cousin is almost as funny as he is.
^^
First of all let’s get real here. How did we get in this situation in the first place. Let’s start with our own greedy UAW leaders who came up with the two tier systems to fatten they pockets they stole millions of dollars from they own UAW workers they made deals with the big 3 to fatten they pockets too. This stated with Nate Goodman ,Evander Holifield and many more who sold us out to these companies. We should have gotten all these things we asking for 10 years ago now that we have a honest new UAW president Shaw Fain who is willing to fight for the uaw workers it’s a problem now . The big 3 doesn’t want to give us anything because the UAW Leaders was in they pockets too. So Shawn Fain good luck cause you got a fight on your hands and you still got those same crooks who sold us out standing by your side when u took office you should have cleaned house and brought in everyone new those UAW leaders can’t be trusted they put us here and if you didn’t win as president they will still be going along with the two tier system and everything else they never cared about UAW members just look at all the corruption they caused. So I don’t blame these big corporations Your leaders put us here.
Unions like the United Auto Workers have driven US companies out of business. The higher the US wages, the higher the cost of US consumer goods. People shop at Walmart because it’s less expensive. People buy foreign cars because they’re less expensive. The UAW is already the highest paid autoworkers in the world overall, wages and benefits combined. Higher UAW wages will mean more expensive American cars. People buying American cars will be expected to shoulder the burden of higher UAW wages.