After kicking off negotiations by saying that it was seeking a 40+ percent wage gain over the life of its next contract, the United Auto Workers (UAW) wound up lowering that figure into the mid-30 percent range shortly thereafter. Now, after much back and forth and multiple plant walkouts, Ford recently admitted that it had reached the limit of what it can offer financially. Just yesterday, the UAW revealed what The Blue Oval – along with General Motors and Stellantis – are currently offering the union, with all three agreeing to a 23 percent pay raise. However, it seems as if the UAW wants a bit more than that, according to Automotive News.
The union is reportedly seeking at least a 25 percent pay raise over the life of the new four-year contract with the Detroit Big Three automakers, which is a significant reduction compared to its initial ask, yet one that still fits within President Shawn Fain’s desire to achieve “substantial” double-digit wage increases for workers.
A 25 percent raise for workers would mean that hourly wages would top out at around $41.20 in 2027, while the 23 percent proposal that’s on the table would result in a slightly lower figure of $40.39. Over the life of the four-year contract, that difference equates to around $3,100 per worker, to boot.
In the meantime, talks between the UAW and automakers remain ongoing, with Stellantis and GM reportedly receiving new counterproposals from the union this week. As for Ford, sources indicate that the union is awaiting an updated offer from The Blue Oval, but it’s unclear if it plans to budge on its current offer, which Fain has called the “best” of the three. Ford executive chairman Bill Ford recently said that FoMoCo “could live with the deal we have proposed, but just barely.”