UAW strike update: A look at Ford's latest offer to union
DETROIT (FOX 2) - Ford revealed details of its newest offer to the UAW on Tuesday night.
The automaker's seventh offer includes what it says is record pay and benefits.
Workers would get a pay raise of more than 20%, along with cost-of-living allowances for inflation.
Additionally, all tiers would be eliminated while wage progression would be reduced by more than half the time it takes to earn top wages. Average new hires will earn six figures by the fourth year. Temporary employees would be included in profit sharing and full ratification bonus, Ford said.
The automaker says this offer is the "strongest offer Ford has made on the key economic issues since Aug. 29."
The union initially was asking for a 46% pay raise, a 32-hour work week with 40 hours of pay, the tier system removed, and restoration of traditional pensions for new hires, among other demands. However, the union said it is now willing to accept a pay raise percentage in the mid-30s.
"Ford’s latest offer provides our 57,000 UAW-represented employees with a record contract and a strong future," a release detailing the offer said. "Ford’s offer includes unprecedented improvements in wages (putting employees among the top 25% of all U.S. jobs, hourly and salaried) and benefits, product commitments for every UAW factory, and job security. At the same time, it preserves Ford’s ability to invest and grow."
During a press conference last week, Ford officials, including CEO Jim Farley, reiterated that employees would not lose their jobs over battery plants. This, according to the automaker, is a concern of the union.
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Ford President and CEO Jim Farley will provide an update on negotiations with the UAW on Friday afternoon after union members at its Chicago Assembly Plant were called to strike.
On Friday, UAW President Shawn Fain called on more Ford workers to take to the picket line.
Initially, only UAW members at Ford's Michigan Assembly Plant were on strike. The Chicago Assembly Plant was added after Fain claimed Ford and GM were not making "meaningful progress at the table."
After the most recent strike expansion, Ford laid off 330 workers in Illinois and Ohio.
General Motors also laid off 164 workers in Ohio and Indiana. GM's Lansing Delta Assembly Plant was also targeted in the latest expansion.
Stellantis was the only Big Three automaker that didn't have more workers added to the picket line last week.