Ford’s UAW Contract Offer Includes Pay Increases, Tiers Eliminated

Ford Motor Co. in Dearborn has presented its latest labor contract proposal to the United Auto Workers (UAW) for consideration.

After extensive negotiations, Ford’s contract would provide its hourly employees with 15 percent guaranteed combined wage increases and lump sums, and improved benefits over the life of the contract, according to the company.

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 percent of all employer-sponsored medical plans for lowest employee cost sharing.

“Overall, this offer is significantly better than what Ford executives estimate workers earn at Tesla and foreign automakers operating in the U.S.,” says Jim Farley, CEO at Ford.

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.

“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,” says Farley. “This offer would also allow Ford to compete, invest in new products, grow, and share that future success with our employees through profit sharing.

“The contract is meant to create opportunity for every UAW worker to build a career at Ford and to become a full-time permanent Ford employee with wages and benefits that come with it.”

According to Farley, the 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 percent, delivers a 20 percent raise for temporary employees, and extends to temporary employees the same ratification bonus that permanent employees receive.

“Only 2 percent to 3 percent of Ford’s hourly workforce are temporary employees, by far the lowest among the Big Three,” he notes.

Ford says it will not make a deal that endangers the company’s ability to invest, grow, and share profits with its employees.

“That would mortgage our future and would be harmful to everyone with a stake in Ford, including our valued UAW workers,” says Farley. “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.”