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Ford Motor Company released late yesterday a proposal on the upcoming contract that would provide 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.
After this occurred UAW president Shawn Fain met with members electronically and in essence tossed the Ford proposal into a trash can. “What has Ford proposed? A 9% general wage increase over the life of the contract. And instead of cost-of-living, they’ve offered one-time lump sum bonuses. Companies love lump sum bonuses because they keep your base wages low, reducing your lifetime earnings. Ford’s wage proposals not only fail to meet our needs, it insults our very worth,” said Fain.
How did things get this bad?
This apparently overlooked Ford’s 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,” said CEO Jim Farley who is facing the biggest challenge of his career.
Even though Ford has exceeded its commitments to add jobs and invest during the last three contracts, most recently creating or retaining 5600 additional UAW-represented jobs beyond the 8500 it committed to and investing $1.4 billion beyond the $6 billion also committed during the 2019 contract.
Right now, Ford labor relations look to be the worst since the infamous “Battle of the Overpass” in May of 1937 where Walter Reuther and members of the UAW fought with Ford security guards (aka muscle or company goons) at the River Rouge Plant complex in Dearborn, Michigan. It was a public relations disaster for the company. How things have gotten this bad is a question that likely will take years to answer.
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.
“Economic terrorism” from the Big Three, Fain alleged.
“Overall, this offer is significantly better than what we estimate workers earn at Tesla and foreign automakers operating in the US,” Fairly said. “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.”
Not a propitious way to start the Labor Day weekend…
Ford UAW Offer – Pay Increases, Tiers Gone. UAW says No
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Ford Motor Company released late yesterday a proposal on the upcoming contract that would provide 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.
After this occurred UAW president Shawn Fain met with members electronically and in essence tossed the Ford proposal into a trash can. “What has Ford proposed? A 9% general wage increase over the life of the contract. And instead of cost-of-living, they’ve offered one-time lump sum bonuses. Companies love lump sum bonuses because they keep your base wages low, reducing your lifetime earnings. Ford’s wage proposals not only fail to meet our needs, it insults our very worth,” said Fain.
How did things get this bad?
This apparently overlooked Ford’s 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,” said CEO Jim Farley who is facing the biggest challenge of his career.
Even though Ford has exceeded its commitments to add jobs and invest during the last three contracts, most recently creating or retaining 5600 additional UAW-represented jobs beyond the 8500 it committed to and investing $1.4 billion beyond the $6 billion also committed during the 2019 contract.
Right now, Ford labor relations look to be the worst since the infamous “Battle of the Overpass” in May of 1937 where Walter Reuther and members of the UAW fought with Ford security guards (aka muscle or company goons) at the River Rouge Plant complex in Dearborn, Michigan. It was a public relations disaster for the company. How things have gotten this bad is a question that likely will take years to answer.
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.
“Economic terrorism” from the Big Three, Fain alleged.
“Overall, this offer is significantly better than what we estimate workers earn at Tesla and foreign automakers operating in the US,” Fairly said. “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.”
Not a propitious way to start the Labor Day weekend…