Ford's new contract offer includes more than a 20% raise and five weeks of vacation each year.
by brad anderson
October 5, 2023 16:53
Ford has made a new proposal to the United Auto Workers union that hopes to end ongoing labor strikes across the country.
The record agreement applies to all 57,000 Ford employees who are members of the UAW. The proposal begins by providing a commitment to all UAW factories in the United States, saying no jobs will be lost from the impending construction of EV battery factories. The company is also working on a profit-sharing program for all employees, including temporary workers, who will receive an immediate 26% pay increase to $21 an hour.
Additionally, Ford announced that all temporary employees with at least three months of continuous service will be converted to permanent employees. Full-time employees will also benefit from more than 20% pay increases, including double-digit pay increases as soon as the deal is ratified. Ford also said it would provide traditional cost-of-living benefits to protect against inflation and ensure all employees reach the maximum wage.
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Read: GM CEO unloads on UAW, says union planned for 'long and unnecessary strike' from the beginning
The Dearborn-based automaker added that employee pay growth will accelerate significantly, with the average new hire earning six-figure incomes by their fourth year with the company. Ford also offers guaranteed income for all full-time employees, health insurance for the top 1 percent of U.S. workers, increased 401(k) retirement benefits, and more. Employees can also enjoy a better work-life balance with up to 5 weeks of vacation per year, plus 17 paid vacation days and 2 paid family days.
“There's no question that UAW employees have strained us during the pandemic, and those same employees and their families have been hit hard by inflation,” Ford CEO Jim Farley said in a statement. ” he said. “We want to make sure our employees walk away with two things: a record contract and a strong future, especially given our large footprint in the U.S. and the UAW workforce. We have put an offer on the table that will likely be expensive for the company, but we still believe Ford can invest in its future.”
Ford remains open to the possibility of collaborating with the UAW on future battery plants in the U.S., and employees at the plant built in partnership with SK On will choose union representation to enter the collective bargaining process. He added that he could participate.
