Ford offers UAW “unprecedented” pay raises in its seventh offer

Credit: CNBC Television /YouTube

Ford Motor Co. offered unprecedented pay raises in its seventh offer to the United Auto Workers (UAW) union.

“Ford has received two comprehensive counteroffers from the UAW, the last on Sept. 25. Ford’s latest offer provides our 57,000 UAW-represented employees with a record contract and a strong future,” stated the legacy automaker. 

In its latest offer, Ford increased temporary workers’ pay by 26% to $21 per hour versus $20 in its last offer. The company proposed converting temporary workers to permanent positions within at least three months of continuous employment. 

The legacy automaker offered to raise the pay of most full-time workers by over 20%. It also provides allowances for traditional cost-of-living and reduces the time to earn a top wage by half. 

Ford on Monday night made a comprehensive offer to the UAW in an effort to reach a tentative agreement

Below is a list of highlights from Ford’s proposal

  • Product commitments for every UAW plant in America; no job loss due to EV battery plants
  • Profit-sharing to include temporary employees for the first time
  • Ratification bonus to include temporary employees for the first time
  • Pay raise to $21 an hour or a 26% increase for temporary workers.
  • Conversion of all temporary employees with at least three months of continuous service to permanent status upon ratification
  • General wage increase of more than 20%, which would be an immediate double-digit increase upon ratification
  • Traditional cost-of-living allowances (COLA) to provide “inflation protection.”
  • Elimination of tiers so that all employees may reach the top wage rate
  • Faster wage progression, reducing by more than half the time it takes to earn a top wage so that an average new hire will “earn 6 figures by 4th year.”
  • Income protection for all permanent employees
  • No change to health care, which currently offers $0 premiums and puts employees in the top 1% of American workers
  • Increased 401(k) contributions so that the “average employee hired today can accrue $1 million-plus retirement fund with reasonable market returns.”
  • More time off, which means up to five weeks of vacation, an average of 17 paid holidays annually, including Juneteenth, and two family days

In a press release, Ford stated that its seventh proposal to the UAW includes wage improvements that would put its employees among the top 25% of all jobs in the United States—hourly and salaried. The offer also had unprecedented benefits and product commitments for every UAW factory and job security. For Ford, the proposal preserves its ability to invest and grow. 

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Ford offers UAW “unprecedented” pay raises in its seventh offer
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