On September 12, 2023, Ford CEO Jim Farley addresses the media following the unveiling of the 2024 Ford F-150 for the Detroit car show.
- ESSENTIAL POINTS
- Shawn Fain, president of the United Auto Workers, claimed on Wednesday night that the firm is not serious about bargaining, but Ford CEO Jim Farley disagreed.
- Regarding the company’s four economic proposals, Farley claimed that “no genuine counteroffer” has been made.
- Prior to a strike deadline on Thursday at 11:59 p.m. ET, the UAW is negotiating various national contracts with the automakers Ford, General Motors, and Stellantis in parallel.
Before a strike deadline on Thursday night, United Auto Workers President Shawn Fain claimed that Ford Motor Company is not treating negotiations seriously. Ford Motor CEO Jim Farley responded by criticizing the union chief for failing to appear at the negotiating table, both metaphorically and literally.
According to Farley, the firm has received “no genuine counteroffer” to any of its four economic proposals, including the most recent offer, which Ford claims to be the most generous ever made by the UAW and company. He added that Fain, who is in negotiations with Stellantis and General Motors at the same time, was not present at a meeting on Tuesday that he and Ford Chairman Bill Ford had anticipated he would attend.
“We’re here, we’re ready to negotiate, but it’s sure hard to negotiate a contract when there’s no one to negotiate with,” Farley told reporters Wednesday evening outside the Detroit Auto Show. We still have time, but when you don’t hear back from your negotiations, it’s challenging.
About a day after telling reporters that he was confident the business could reach a settlement with the union on Tuesday, Farley made his remarks. Although the union and an automaker have received public criticism before, the volume of information provided, the strike plans that have been made public, and the concurrent negotiating are unheard of.
Until Fain brought up the offer during a 5 p.m. ET Facebook Live with union members, according to Farley, he was unaware that Fain had accepted the offer. Fain may already be so busy “planning strikes or PR events that we can’t get the feedback to make the best offer,” he further questioned.
A UAW spokesman did not reply to a request for comment regarding Farley’s remarks or a letter that the organization released on his behalf that addressed several of Fain’s complaints. The union claims that the businesses are aware of their requests. They include, among other things, the abolition of compensation levels, the reintroduction of cost-of-living adjustments, the reduction of the workweek to 32 hours, the ambitious goal of 40% hourly pay increases.
When asked explicitly if he thought the union was bargaining in good faith, which would be grounds for filing a complaint with the National Labor Relations Board, Farley chose not to respond. Late last month, the UAW complained to the NLRB about unfair labor practices against GM and Stellantis for failing to bargain with the union in good faith or on schedule. It didn’t protest about Ford in any way.
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Ford’s most recent proposal
As made public by the UAW on Wednesday, includes some but not all of the union’s objectives. A “deficient” cost-of-living adjustment restoration, a revised profit-sharing formula, a 90-day transition period for “temp,” or supplemental, workers to become permanent employees, as well as other benefits like more vacation days and two weeks of paid parental leave were all included. The salary increases were 20%.
Fain claimed that the union’s pension and healthcare plans were turned down by Ford and its crosstown rivals. Fain stated that the union will carry out targeted strikes at certain factories against the Detroit automakers if the UAW and the businesses are unable to reach an agreement by the deadline of Thursday at 11:59 p.m. ET.
Fain asserted at his Facebook event that strikes against the companies are “likely.” “We’ll probably need to act if we want to win. We’re getting ready to strike these firms in a way they’ve never seen before, just as we’ve approached our discussions differently than we have in the past,” Fain added.
The Ford team continues to put 100% of our energy into reaching an agreement with the UAW that rewards our valued employees and allows the company to invest in the future. If there is a strike, it’s not because Ford didn’t make a great offer. We have and that’s what we can control.
In fact, we have put four offers on the table starting Aug. 29 and each one has been increasingly generous. We still have not received any genuine counteroffer.
On Tuesday, Bill Ford and I sat down with the union at the main table for a major offer. As we were walking in the room, we learned President Fain would not be attending. Nevertheless, Bill and I laid out a historically generous offer to the UAW Ford bargaining team because we listened to the UAW demands and we care about our employees. Here are the facts. Ford:
• Significantly increased our proposal on wage increases;
• Offered Cost of Living Adjustments, or COLA;
• Fully eliminated wage tiers so all employees can achieve industry-leading wages – and shortened to four from eight years the time it takes hourly employees to reach the top wage;
• Increased contributions to in-progression retirement savings;
• Protected health care benefits that would continue to rank in the top 1% of all employer sponsored medical plans for lowest employee cost sharing; and
• Added more paid time off, with up to five weeks of vacation and 17 paid holidays each year (with the addition of Juneteenth).
The first we learned President Fain received the offer was on Facebook Live this evening. So again, we are here and ready to reach a deal. We should be working creatively to solve hard problems rather than planning strikes and PR events.
Please remember that Ford, more than any other company, has bet on the UAW and treated the UAW with respect. We have been incredibly supportive of the union. We have gone well beyond any contract language in adding jobs and investment. The future of our industry is at stake. Let’s do everything we can to avert a disastrous outcome.
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