Ford Motor Co. announced Thursday morning that nearly 8,000 United Auto Workers-represented employees "have been fast-tracked to higher earnings," and some will earn $9,000 more per year. This comes as the automaker and the union have been discussing a new four-year labor agreement, as the current one expires next Thursday. UAW members have already voted in favor of a strike if no labor agreement is reached.
These employees will earn $4.33 more per hour, or $9,000 a year; some could earn more than $10,000 a year with overtime.
"The pay hikes were negotiated by Ford and the UAW in 2019 to shorten the time it takes workers to reach the average top wage rate of $32 an hour," the automaker said.
Bryce Currie, Ford's vice president of manufacturing, said the fast track to higher "pay raises" is an example of Ford's commitment to improving the finances of its workforce.
Currie continued, "The negotiating teams nicknamed this deal '23 Jump Street' because in 2023, a significant number of UAW-Ford team members would see a jump in pay. And we are offering further improvements in the next contract."
Ford said the wage rate hikes usually takes eight years to play out, but this new agreement with 8,000 unionized employees means they have reached the top wage rate in four years.
The automaker has 57,000 UAW-represented hourly employees, with an average of 80% of all UAW employees at the top wage rate or making around $32 per hour.
UAW has been in heated discussions with Ford, General Motors Co, and Stellantis NV over new labor contracts that expire next Thursday. The union has demanded 40% pay hikes for its workers across all three automakers.
Last week, Ford offered a 9% wage rise until 2027, significantly lower than the 40% increase the union demands. UAW members have voted to strike if no new labor contract can be negotiated across Detroit's Big Three automakers.
