‘23 Jump Street’: Ford Fast Tracks Pay Increase for 8,000 UAW Employees, Average Raise Could Top $10,000 a Year
- Nearly 8,000 UAW-represented Ford employees have been fast-tracked to higher earnings as of Labor Day
- Employees receive an increase of $4.33 per hour on average, or about $9,000 per year – with overtime, the average annual pay increase could top $10,000
- 80% of Ford’s 57,000 UAW-represented hourly employees are now at the top wage rate – $32 per hour on average, not including overtime
DEARBORN, Mich., Sept. 7, 2023 – Nearly 8,000 UAW-represented Ford employees received a substantial raise this Labor Day.
On average, these employees now earn $4.33 more per hour, or $9,000 a year. The increase could top $10,000 a year with overtime. The pay hikes were negotiated by Ford and the UAW in 2019 to shorten the time it takes workers to reach the average top wage rate of $32 an hour.
“These pay raises are an example of Ford’s commitment to improving the lives of our hourly workforce,” said Bryce Currie, Ford vice president, Manufacturing. “The negotiating teams nicknamed this deal ‘23 Jump Street’ because in 2023 a significant number of UAW-Ford team members would see a jump in pay. And we are offering further improvements in the next contract.”
Normally, growing into the top wage rate takes eight years, but with this agreement, 8,000 employees reached the top wage rates with as little as four years on the job.
The top wage rate differs by the specific type of job an employee does. On average, it is $32 per hour. With this move, 80% of all Ford’s UAW-represented hourly employees are now at the top wage rate. Those at the top wage rate are earning higher wages than 90% of all hourly employees in the U.S. auto industry, according to data from the Bureau of Labor Statistics.
Permanent hourly manufacturing employees were eligible for the pay increase if they were hired prior to the 2019 contract effective date and were earning at least $24.40 per hour as of Sept. 1, 2023.
Employees will see the pay increase in their next paystubs.
Ford has exceeded its job and investment commitments for the last three contracts, recently creating or retaining 5,600 jobs beyond 8,500 committed and investing $1.4 billion beyond $6 billion committed in the 2019 contract.
The company converted more than 14,100 employees from temporary employment to full-time permanent roles during the past four years – most of them ahead of schedule – and made all new hourly employees eligible for health care benefits from their first day on the job effective June 13, 2022.
Ford launched a $1 billion five-year plan to upgrade the workplace experience in its plants, starting in 2022, providing better food service, mother’s stations, upgraded restrooms and more.
About Ford Motor Company
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company does that through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough EVs along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, Ford is pursuing mobility solutions through Ford Next, and provides financial services through Ford Motor Credit Company. Ford employs about 177,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.