Ford has made a new offer to the United Auto Workers union that it hopes will end ongoing labor strikes across the country.
The record contract applies to all 57,000 Ford employees who are members of the UAW. The offer starts by providing commitments for every UAW plant in the U.S. and says that no jobs will be lost due to its impending EV battery plants. It has also committed to a profit-sharing program for all employees, including temporary employees who will immediately receive a 26% pay rise up to $21 per hour.
In addition, Ford says that it will convert all temporary employees with at least 3 months of continuous service to permanent status. Permanent employees will also benefit from wage increases of more than 20%, including an immediate double-digit increase if the contract is ratified. Ford also says it will provide traditional cost-of-living allowances to provide inflation protection and will ensure that all employees can reach the top wage rate.
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The Dearborn-based car manufacturer has added that the wages of employees will progress much faster, so much so that the average new hire will earn six figures by their fourth year. Ford is also offering income protection for all permanent employees, health care coverage in the top 1% of American workers, and increased 401(k) retirement contributions. Workers will also enjoy a better work-life balance with up to 5 weeks of vacation each year plus 17 paid holidays and two paid family days.
“There’s no doubt our UAW workforce put us on their shoulders during the pandemic, and these same workers and their families were hit hard by inflation,” Ford chief executive Jim Farley said. “We want to make sure our workers come out of these negotiations with two things – a record contract and a strong future. We’ve put an offer on the table that will be costly for the company, especially given our large American footprint and UAW workforce, but one that we believe still allows Ford to invest in the future.”
Ford added that it remains open to the possibility of working with the UAW on its future battery plants in the United States and that employees at the plants built in partnership with SK On will be able to choose union representation and enter the collective bargaining process.