Ford offers 25% wage increase in new UAW deal

(Credit: Ford)

Ford and the United Auto Workers (UAW) Union announced a new tentative agreement, offering a 25% wage increase. The agreement comes after 41 days of strikes by UAW union members across several Ford factories in the United States. 

Union leaders will take several days to review the details of the tentative agreement before revealing it to the public. It must approve the Ford deal with a majority vote for the tentative agreement to be officially adopted. Ford’s agreement will be in effect for over four years, covering 57,000 union workers. 

Earlier this month, Ford made its seventh offer to the union. The legacy automaker claimed it offered unprecedented pay raises. The contract increased workers’ pay by 26% to $21 per hour versus $20 in the previous offer. In addition, it offered to increase the pay of most full-time workers by over 20%. Ford also proposed converting temporary workers to permanent employment positions faster.

The latest Ford deal also has pay increases. UAW President Shawn Fain shared that the tentative Ford deal includes 25% wage increases throughout the agreement. The lowest temporary workers would see a wage increase of over 150% over the deal’s life. The Union initially sought a 40% increase in wages over four years. Under the latest tentative Ford agreement, the starting wage increases by 68% while the top wage increases by 33%. The UAW also noted that some workers at Ford’s Sterling Axle/Rawsonville plant could expect an immediate wage increase up to 85%.

“[It] provides a record raise to auto workers who have sacrificed so much to ensure our iconic Big Three companies can still lead the world in quality and innovation,” said United States President Biden.

After Teslarati’s report about Ford’s seventh offer was published, a few workers reached out to offer their opinions. 

“That’s a phenomenal offer, and I only wish that my package could have been half as good. Very inflationary, especially after [the] contract with UPS drivers. Those of us not in a union or retired folk will be in a bind,” shared one reader. 

Another Teslarati reader pointed out some details Ford’s seventh UAW deal might have missed. 

“I can’t afford a new car at the current wage level. I definitely can’t afford one in the future. I’m retired, and my social security benefits, unfortunately, are not tied to the UAW contract,” he said.

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Ford offers 25% wage increase in new UAW deal
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