Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Ford Motor Company (F) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ford Motor Company (F) - free report >>
Image: Bigstock
Ford's (F) Contract Offer Falls Short of UAW Expectations
Ford (F - Free Report) presented a contract offer to the United Auto Workers (UAW) after the union called Detroit Three automakers to come up with counter-proposals.
The offer includes 15% guaranteed combined wage increases and lump-sums, and enhanced benefits over the life of the contract. For UAW-represented hourly workers, Ford decided to increase wages and lump-sum bonuses to $92,000 in the first year of the contract, up from $78,000 in 2022.
Apart from an increase in wages and bonuses, workers would also receive health care coverage and other benefits worth $17,500 and $20,500, respectively. In the first year alone, full-time permanent employees at the top wage rate could make up to $98,000 from wages, bonuses, profit sharing and overtime, per the company’s press release.
Per Ford, its offer is significantly better than other automakers’ offers operating in the United States.
In the last three contracts, the legacy automaker has outperformed its commitment by creating or retaining 5,600 additional UAW-represented jobs and investing $1.4 billion beyond its commitment.
Ford has discarded wage tiers from the contract offer to help all employees achieve industry-leading wages.
However, the offer did not go down well with Shawn Fain, the president of UAW. During a live presentation on Aug 31, 2023, Fain discarded Ford's proposal, deeming it both inadequate and offensive. He said that the union will accept nothing short of consistent wages that will rise in tandem with the economy.
Per Ford’s press release, the automaker will not make a deal that limits its ability to invest, grow and share profits with its employees. F currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, UAW has filed unfair labor charges against General Motors (GM - Free Report) and Stellantis N.V. (STLA - Free Report) with the National Labor Relations Board (“NLRB”). Fain said that these two companies have refused to work with the union to reach a fair contract. General Motors and Stellantis have called the claim made by Fain baseless.