Ford’s Most Generous Contract Proposal to UAW Includes Pay Increases and Investment in US Plants

Ford’s Generous Offer to UAW: CEO Jim Farley

Speaking after the introduction of the refreshed 2024 F-150, Ford Motor Co. CEO Jim Farley announced that the company’s latest contract proposal to the United Auto Workers (UAW) is the “most generous offer in 80 years.” Farley emphasized that the offer addresses several union priorities, although a four-day work week is not included.

The CEO revealed that Ford’s proposal includes pay increases, the elimination of tiered wages, inflation protection, five weeks of paid vacation, 17 paid holidays, bigger contributions for retirement, and investments in all U.S. plants. While Farley did not provide specific details, he stated that the offer represents a significant enhancement.

“I’m still optimistic we’ll get a deal, but there is a limit because we have to protect for the future and future investments, and the profitability of the company funds those,” Farley remarked.

Ford’s Proposals and the Union’s Demands

According to Ford’s most recent public proposals, they are offering 16 percent wage gains, including bonuses, over the life of the contract. The automaker is also providing a $6,500 ratification bonus. However, Farley clarified that the company is not willing to accommodate all of the UAW’s demands.

Farley addressed the issue of a four-day work week, stating, “A four-day work week is not containable. We’re literally fighting for the future of automotive manufacturing in our country. But we’re optimistic we’ll find a way forward. We have 48 hours to go, but we’re not going to support a four-day work week.”

The negotiating teams from both sides are working tirelessly to reach an agreement before the September 14 deadline. Farley revealed that he has personally met with UAW President Shawn Fain at the negotiation table. While Ford is prepared for a strike, the CEO expressed hope that it does not come to that.

“We’ve made a lot of progress, but we have more to do,” Farley added. “My team…is working all day and all night for the next 48 hours. They’re sleeping in the company headquarters to get this done.”

UAW’s Strike Threats and Potential Targets

Sources have informed Reuters that the UAW may choose to strike specific auto plants if new contracts with the Detroit 3 (General Motors, Ford, and Stellantis) are not reached by the deadline this week. UAW President Shawn Fain has vowed to call strikes at all three automakers if no deal is in place when the current labor agreements expire on September 16.

Reports suggest that the UAW is considering targeting strategic plants initially, causing work stoppages at the Detroit 3. This plan, referred to as a “stand up strike” by one UAW local on Facebook, could evolve. Fain is scheduled to announce the union’s strike plan on Wednesday evening.

By targeting key plants, the UAW aims to swiftly halt U.S. production and extend the time before their $825 million strike fund is depleted. Simultaneous strikes at all three Detroit automakers would be unprecedented and one of the largest labor actions in recent times.

Last Friday, the UAW rejected revised offers from Stellantis, GM, and Ford. GM made a new offer over the weekend, although specific details have yet to be disclosed.

“We’ve made a lot of progress over the last few days,” GM President Mark Reuss stated at the Automotive News Congress in Detroit. “The give and take is really happening.”

Reuters contributed to this report.

Follow AsumeTech on

More From Category

More Stories Today

Leave a Reply