Ford Media Center

Ford Makes Substantial UAW Contract Offer: Significant Pay Increases, Tiers Eliminated, 25% Faster Growth to Top Wage

[Statement attributable to Jim Farley, Ford president and CEO]

Ford employs the most UAW workers and is the most American automaker in terms of vehicles assembled and vehicles exported from the U.S. We have made these choices because we believe in American workers, in our partnership with the UAW and in enriching American communities.

Ford has exceeded its commitments to add jobs and invest during the last three contracts, most recently creating or retaining 5,600 additional UAW-represented jobs beyond the 8,500 we committed and investing $1.4 billion beyond the $6 billion we committed during the 2019 contract.

After extensive negotiations, Ford has presented a generous offer on the upcoming contract that would provide our hourly employees with 15% guaranteed combined wage increases and lump sums, and improved benefits over the life of the contract. 

Wages (including overtime) and lump sum bonuses for Ford’s UAW-represented hourly workers would increase from $78,000 on average in 2022 to $92,000 in the first year of the contract.

On top of $92,000 in wages and bonuses, workers would receive health care coverage worth $17,500 and other benefits worth an additional $20,500 in the first year. Health care for permanent UAW-represented hourly employees would continue to rank in the top 1% of all employer-sponsored medical plans for lowest employee cost sharing.

Full-time permanent Ford employees at the top wage rate could be paid $98,000 – from wages, cost-of-living adjustment bonus, ratification bonus, profit sharing and overtime – in the first year alone. 

Overall, this offer is significantly better than what we estimate workers earn at Tesla and foreign automakers operating in the U.S. 

This would be an important deal for our workers, and it would allow for the continuation of Ford’s unique position as the most American automaker – and give us the flexibility we need within our manufacturing footprint to respond to customer demand as the industry transforms. This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing. 

We are committed to creating opportunity for every UAW worker to build a great career at Ford and to become a full-time permanent Ford employee with the good middle-class wages and benefits that come with it. Our offer fully eliminates wage tiers so all employees can achieve industry-leading wages, accelerates the grow-in period to reach the top wage rate by 25%, delivers a 20% raise for temporary employees and extends to temporary employees the same ratification bonus that permanent employees receive. Only 2% to 3% of Ford’s hourly workforce are temporary employees, by far the lowest among the Big 3. 

But we will not make a deal that endangers our ability to invest, grow and share profits with our employees. That would mortgage our future and would be harmful to everyone with a stake in Ford, including our valued UAW workers.

Bottom line, we believe there is a path to succeed together in what is the most competitive and fast-changing era in the history of the American auto industry. Please see details below.

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About Ford Motor Company

Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams.  The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty.  Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services.  The company does that through three customer-centered business segments:  Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough EVs along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs.  Additionally, Ford provides financial services through Ford Motor Credit Company.  Ford employs about 176,000 people worldwide.  More information about the company and its products and services is available at corporate.ford.com.

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