Automakers Begin Paying $50K Retirement Incentive To UAW Workers

January 5, 2024 9:46 am

2023 Ford Super Duty Production Kentucky Truck Plant - Exterior 003 - Front Three Quarters

Following its six-week-long targeted strike against Ford, General Motors, and Stellantis, the United Auto Workers (UAW) reached a tentative agreement with all three automakers last year, which was later ratified by workers. Ford CEO Jim Farley was quick to note that he’s happy for those workers and the benefits they’ll receive as part of the new master contract, but also pointed out that the new deal will be quite costly for the automaker – in fact, the strike ultimately consumed $1.7 billion in profit, not accounting for future losses. Now, one of the benefits included in this new master contract with automakers is starting to reach UAW workers – a special retirement incentive, according to the Detroit Free Press.

According to this report, Stellantis UAW workers have begun receiving this new special retirement incentive, which consists of a pre-tax $50,000 lump sum this year, with another lump sum deal set to be delivered in 2026 as well. Workers that are eligible for this offer have until the end of the year to take advantage of it, too.

This incentive – which applies to an “unlimited number of eligible production and skilled trade members,” according to the UAW, is valid for workers that are at least 60 years of age who have at least 10 years of service, plus others that fall under different eligibility requirements – “traditional employees who meet the normal or early retirement eligibility requirements,” according to the union.

To receive this benefit, eligible workers must also leave the company on a date that’s been approved by management, which will vary based on the company’s operational needs, and could be extended if it deems such a move necessary. In addition to Stellantis, Ford also included a $50,000 special retirement incentive in its master contract with the UAW for those that choose to retire in 2024, while GM agreed to three “Special Attrition Programs.”

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

By Brett Foote

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.