Ford Makes Substantial UAW Contract Offer: Significant Pay Increases, Tiers Eliminated, 25% Faster Growth to Top Wage
Jim Farley, president and CEO, Ford Motor Company, issued the following statement:
Ford employs the most UAW workers and is the most American automaker in terms of vehicles assembled and vehicles exported from the U.S. We have made these choices because we believe in American workers, in our partnership with the UAW and in enriching American communities.
Ford has exceeded its commitments to add jobs and invest during the last three contracts, most recently creating or retaining 5,600 additional UAW-represented jobs beyond the 8,500 we committed and investing $1.4 billion beyond the $6 billion we committed during the 2019 contract.
After extensive negotiations, Ford has presented a generous offer on the upcoming contract that would provide our hourly employees with 15% guaranteed combined wage increases and lump sums, and improved benefits over the life of the contract.
Wages (including overtime) and lump sum bonuses for Ford’s UAW-represented hourly workers would increase from $78,000 on average in 2022 to $92,000 in the first year of the contract.
On top of $92,000 in wages and bonuses, workers would receive health care coverage worth $17,500 and other benefits worth an additional $20,500 in the first year. Health care for permanent UAW-represented hourly employees would continue to rank in the top 1% of all employer-sponsored medical plans for lowest employee cost sharing.
Full-time permanent Ford employees at the top wage rate could be paid $98,000 – from wages, cost-of-living adjustment bonus, ratification bonus, profit sharing and overtime – in the first year alone.
Overall, this offer is significantly better than what we estimate workers earn at Tesla and foreign automakers operating in the U.S.
This would be an important deal for our workers, and it would allow for the continuation of Ford’s unique position as the most American automaker – and give us the flexibility we need within our manufacturing footprint to respond to customer demand as the industry transforms. This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing.
We are committed to creating opportunity for every UAW worker to build a great career at Ford and to become a full-time permanent Ford employee with the good middle-class wages and benefits that come with it. Our offer fully eliminates wage tiers so all employees can achieve industry-leading wages, accelerates the grow-in period to reach the top wage rate by 25%, delivers a 20% raise for temporary employees and extends to temporary employees the same ratification bonus that permanent employees receive. Only 2% to 3% of Ford’s hourly workforce are temporary employees, by far the lowest among the Big 3.
But we will not make a deal that endangers our ability to invest, grow and share profits with our employees. That would mortgage our future and would be harmful to everyone with a stake in Ford, including our valued UAW workers.
Bottom line, we believe there is a path to succeed together in what is the most competitive and fast-changing era in the history of the American auto industry. Please see details below.
|WAGES AND BONUSES
6% increase over the span of the contract, plus 8% in lump sum awards
9% general wage increase over the span of the contract (the largest increase since the 1999 contract), with most of it taking effect in the first year, plus 6% in lump sum awards
Six years – enabling employees to reach the top wage rate 25% faster
Two wage tiers at Rawsonville Components Plant and Sterling Axle Plants in Michigan
Full elimination of wage tiers so all employees can achieve industry-leading wages
$16.67 starting wage for temporary employees
$20 starting wage for temporary employees – a 20% increase
$9,000 ratification bonus for permanent employees only
$5,500 ratification bonus for permanent and temporary employees for the first time ever
$6,000 inflation protection bonuses over the span of the contract
$12,000 in cost-of-living adjustment (COLA) bonuses over the span of the contract, including $6,000 in the first year for full-time workers
Only legacy employees can reach five weeks of paid time off
High-seniority in-progression employees earn the same five weeks of paid time off as legacy employees
Two family days
Two family days off per contract continues – a benefit unique to Ford
Health care for permanent UAW-represented hourly employees ranks in the top 1% of all employer-sponsored medical plans for lowest employee cost sharing
Health care for permanent UAW-represented hourly employees would continue to rank in the top 1% of all employer-sponsored medical plans for lowest employee cost sharing
6.4% of employee base wages, plus $1 per hour worked (capped at 2,080) contributed to 401(k) accounts to fund health care in retirement
6.4% of straight time wages for all hours worked, including overtime and short work week hours, plus $1 per hour worked (no cap) contributed to 401(k) accounts to fund health care in retirement