Ford Motor Co. Presents New Labor Proposal

Ford Motor Co. has revealed its latest labor proposal, which it describes as its “seventh and strongest” offer to date. Notably, the company promises that there will be no job losses as a result of the establishment of electric vehicle (EV) battery plants.

Currently, approximately 25,000 members of the United Auto Workers (UAW) union have been on strike for almost three weeks. In an uncommon move, the union has called for strikes at select Ford, General Motors Co., and Stellantis NV assembly lines simultaneously, breaking from the tradition of targeting one company at a time.

Ford submitted its most recent offer on Monday night, refraining from disclosing specific wage figures. However, the automaker asserts that the proposed wage increases would position UAW-represented jobs “among the top 25% of all U.S. jobs, hourly and salaried.”

As of now, the union representatives have not responded to a request for comment on the matter.

While Ford acknowledges that the offer will come at a substantial cost, the company believes it will safeguard its ability to invest and thrive in the market.

Ford affirms its continued willingness to collaborate with the UAW in the development of future EV battery plants in the United States. Nevertheless, the automaker emphasizes that such ventures require significant investments and must be capable of operating competitively and sustainably.

Just last week, Ford temporarily halted work on a $3.5 billion EV battery plant located in Michigan.

Ford ensures that none of its employees, including powertrain employees, will face job losses due to the establishment of battery plants throughout the duration of the four-year contract. In fact, the company anticipates needing to hire additional workers to replace retiring employees and meet the demand for its internal combustion engine (ICE) products.

Following a 2% drop in extended trading, Ford’s stock slightly rebounded. Earlier in the day, both GM and Ford announced that they had laid off additional workers as a consequence of the UAW strike.

Year to date, Ford stock has experienced a modest increase of nearly 4%, contrasting with the approximately 10% gain of the S&P 500 index.