Ford says it's offering 15% pay boost as UAW files complaints against GM, Stellantis

Ford Motor Co. on Thursday said its hourly plant workers could earn $98,000 in wages, overtime and bonuses over the next year under a contract it has offered the UAW.

Ford said the proposed contract would increase benefits and raise workers’ pay at least 15 per cent, including lump-sum payouts.

Workers covered by the deal would see their pay increase from an average of $78,000 in 2022 to $92,000 (all figures in USD) in the first year of the contract, including overtime and bonuses, Ford said. They also would receive $38,000 worth of health care and other benefits, Ford said.

“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,” CEO Jim Farley said in a statement. “This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing.”

Ford detailed its proposal after UAW President Shawn Fain criticized the company’s offer at length during a livestream on Facebook. Fain said Ford’s response to the UAW’s demands “not only fails to meet our needs, it insults our very worth.”

Separately, Fain said the UAW has filed unfair labour practices charges against General Motors and Stellantis, a tactic that rarely has been used during bargaining with the Detroit Three.

Fain said the UAW had submitted complaints to the National Labour Relations Board saying the two automakers have not adequately responded to the union's contract demands. The UAW's contracts with the Detroit Three expire Sept. 14.

The Detroit Three automakers are also negotiating new contracts with Unifor in Canada. The current deal there expires Sept. 18.

"GM and Stellantis's willful refusal to bargain in good faith is not only insulting and counterproductive, it's also illegal," Fain said.

The complaints, which are identical and provide little detail, allege that “during the past six months, the employer has violated the [Labor Relations] Act by refusing to bargain in good faith over mandatory subjects of bargaining including but not limited to wages and benefits.”

A Stellantis spokesperson, in a statement, said it was “shocked” by Fain’s accusation that the company is not bargaining in good faith.

“This is a claim with no basis in fact, and we are disappointed to learn that Mr. Fain is more focused on filing frivolous legal charges than on actual bargaining,” the company said in a statement. “We will vigorously defend this charge when the time comes, but right now we are more focused on continuing to bargain in good faith for a new agreement.”

“We are surprised by and strongly refute the NLRB charge filed by the International UAW," GM said in a statement attributed to Gerald Johnson, its Executive Vice President, Global Manufacturing. "We believe it has no merit and is an insult to the bargaining committees.

"We have been hyper-focused on negotiating directly and in good faith with the UAW and are making progress. The pace of negotiations is based on how quickly both parties resolve nearly 1,000 UAW demands, including more than 90 presented this week. Our goal remains the same - to achieve an agreement without a disruption that rewards our team members and protects the future of the entire GM team.” 

Ford’s proposed wage increase is below what the UAW is asking for, Fain said. Ford has offered to reduce the length of time it takes a new hire to receive top wages from eight years to six, while the UAW wants to eliminate the grow-in period entirely.

Additionally, Fain said Ford wants unlimited use of temporary workers, has refused to reinstitute cost-of-living wage adjustments, will not increase retiree pay and will not agree to the UAW’s demand for a program that that would give workers their normal pay during a layoff.

He said Ford wants to change the current profit-sharing formula, which pays workers $1 for every $1 million in pretax North America profits.

Under Ford’s proposed formula, Fain said, workers would have earned 21 percent less than they did in the past two years.

Fain’s comments Thursday on Facebook echoed similar complaints he had with initial proposals from Stellantis, which he tossed into a trash can during an earlier livestream. He brought the trash can back out Thursday evening.

“Believe me when I say I’m fed up,” Fain said.