Ford gives UAW 'costly' new offer with more than 20% raises

Ford Motor Co. on Tuesday said it has increased the size of the pay raises it's offering UAW members to an "unprecedented" level and shortened the length of time new hires take to reach top wages.

The proposal, presented to the union on Monday, is Ford's seventh since contract negotiations began this summer. It came three days after the UAW ordered workers at Ford's Chicago Assembly Plant to walk out in its latest escalation of its strike against the Detroit 3 that began Sept. 15.

The automaker said it would increase temporary workers' pay 26 percent to $21 an hour, vs. $20 in the last publicly known offer, and raise most full-time workers' pay by "more than" the 20 percent over four years it previously offered, without divulging a specific number. Ford also said it would reduce the time it takes new hires to reach top pay by "more than half," whereas the last offer cut that time from eight years to four.

Ford said the proposal includes product commitments for every factory with UAW-represented workers and promises no jobs would be eliminated in connection with the four electric-vehicle battery plants it plans to open. The deal would last until May 1, 2028, which the union has requested.

"There's no doubt our UAW workforce put us on their shoulders during the pandemic, and these same workers and their families were hit hard by inflation. We want to make sure our workers come out of these negotiations with two things — a record contract and a strong future," Ford CEO Jim Farley said in a statement. "We've put an offer on the table that will be costly for the company, especially given our large American footprint and UAW workforce, but one that we believe still allows Ford to invest in the future."

The UAW did not immediately respond to a request for comment.

Ford said it last received a counteroffer from the UAW on Sept. 25.

Its latest offer comes days after Farley attacked the union for holding talks "hostage" over battery plants. Farley said the union leader wasn't being upfront with his membership about what Ford is offering them and warned that the UAW's demands could push jobs and production of vehicles such as the Explorer out of the U.S.

Fain, in return, said Farley was "lying about the state of negotiations" and blamed Ford for holding up talks.

Ford on Tuesday reiterated that the union has "taken a hard line" on battery plants.

"While Ford remains open to the possibility of working with the UAW on future battery plants in the United States, these are multi-billion-dollar investments and must operate at competitive and sustainable levels," the company's statement said. "Three of the four battery plants under construction are part of the BlueOval SK joint venture between Ford and SK On. The workforce for these operations has not been hired. The future employees at these operations can choose to be union represented and enter into the collective bargaining process."

Talks are ongoing with all three automakers as about 25,000 of their employees remain on strike.

General Motors met with UAW leaders Monday when the UAW presented a comprehensive counteroffer for the first time in 11 days, although a company spokesman said "significant gaps remain."

The UAW also met with Stellantis on Monday, according to a union source.