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Ford agrees to 25% wage increase in new UAW deal

Published on 8 Comments on Ford agrees to 258 wage increase in new UAW deal

The auto strike isn't over yet, but the Wall Street Journal reports that the UAW has reached agreement on a new contract with one of the Big Three:

As part of the proposed contract, Ford has agreed to give factory workers a 25% wage increase over the life of the agreement, including a 11% bump in the first year, according to people familiar with the details. The wage increase would bump the top pay for assembly line workers from around $32 an hour to roughly $40 an hour.

The UAW has also reduced the time it takes for new hires to reach the maximum wage, reducing it to three years from eight previously.

There's nothing in the story about ending the two-tier wage structure currently in place, but it sounds like it's probably gone. New hires will be paid the same wages as everyone else within three years of being hired.

The UAW membership still needs to vote to accept the deal before the new contract becomes final. Presumably GM and Stellantis (Chrysler) will follow along fairly quickly now that Ford has come to terms.

8 thoughts on “Ford agrees to 25% wage increase in new UAW deal”

  1. rick_jones

    There isn’t a “Big Three” and hasn’t been for years. There is just the “Big Two” (GM and Ford) and whichever foreign car company happens to own Chrysler this year…

      1. rick_jones

        I drove my mothers chop conversion K-car convertible. They welded angle irons underneath but it still was shake, rattle and squeak.

  3. golack

    In effect, they're clawing back some of the give backs. They'll even be making enough to buy new cars--eventually.
    Curious to see how the politics play out.

  4. Adam Strange

    A 25% wage increase over the next five years?

    My god, that's a raise of 4.5%/year, (not corrected for inflation.) What is this going to do to shareholder returns?

    (Sarcasm, if you can't hear my tone of voice.)

    If inflation continues to run at 3.7%, then the workers are getting a raise of 0.8%/year. Considering that long-term labor productivity is increasing at about 2.2%/year, this means that Ford's labor costs will be falling at a rate of 1.4%/year.

    Maybe dividends are safe, after all.....

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