Ford CEO: New contract proposal is 'best UAW offer in 8 decades'
“Huge wage increases” are highlights to UAW counteroffer.
The looming United Auto Workers strike is casting a dark cloud over the entire automotive industry in the United States. However, there is a chance for a storm not to roll through.
Ford (F) - Get Free Report CEO Jim Farley told the Detroit Free Press on the evening of Sept. 12 that the company has made its third labor contract offer to the union in hopes of averting a strike at 11:59pm on Thursday, September 14.
“We put in a huge offer today,” Farley said. “It’ll be the most lucrative offer in the 80-year history of the UAW and Ford."
Related: Think the looming UAW strike won't affect consumers? Think again.
The CEO didn't go into any deep specific details of the contract, however he touts “huge wage increases,” as well as the addition of anti-inflation countermeasures on top of “platinum, top 1% healthcare,” 17 paid holidays and five weeks vacation time.
He also mentioned the elimination of the “tier system,” which traditionally dictated pay and the establishment of benefits such as pensions and retiree healthcare for workers after a period of employment.
"This is a really significant enhancement and a very expensive offer, one we‘ve never seen in the history of the company,” he said.
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An estimated 150,000 autoworkers are represented by the UAW, and the ripple effects of a strike, if it comes, can be felt all the way from factory to showroom - especially for potential car buyers. The Ford CEO is keen to work with the UAW and hopes that the offer is sufficient to avoid a strike.
"We want to avoid a strike, but we’re prepared for one. The strike would be devastating to so many people,” Farley said. “No one understands that more than Ford. Our supply chain, our employees, lost opportunity for wages and profit sharing.”
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