In Detroit today, Ford Motor Co revealed that approximately 8,000 U.S. employees, who are currently represented by the United Auto Workers union, are slated to receive an additional compensation of USD 4.33 per hour as stipulated by the existing contract, which was mutually agreed upon in 2019.
This announcement comes amidst ongoing negotiations between Ford and the UAW, with a looming strike deadline set for September 14. The UAW has been critical of Ford’s recent propositions concerning wage increases, deeming them insufficient.
Last week, Ford said it had offered a 9% wage increase through 2027, much less than the 46% wage hike being sought by the union. The UAW expects to receive a proposal from General Motors on Thursday, a source told Reuters, who spoke on condition of anonymity. GM confirmed it will meet with the UAW Thursday but declined to provide any details.
Ford, however, has taken the lead among the Detroit Three automakers in presenting a comprehensive economic plan during these contract discussions, as part of its strategic efforts to establish the labor standards for unionized U.S. automakers.
Under the terms of Ford’s 2019 contract, permanent hourly manufacturing employees who were hired before the effective date of the 2019 contract and were earning a minimum of USD 24.40 per hour as of September 1, 2023, are deemed eligible for this pay augmentation, according to a company statement. This development marks a pivotal moment in the ongoing labor negotiations between Ford and the UAW.
