Ford Motor Company (NYSE:F) has made its seventh offer to the United Auto Workers, which the automaker called its “strongest” proposal to date.
The proposal, which would last through April 30, 2028, includes "unprecedented improvements in wages (putting employees among the top 25% of all US jobs, hourly and salaried) and benefits, product commitments for every UAW factory, and job security,” according to a statement from Ford.
Specifically, it includes a 20% pay increase for permanent workers and a 26% increase for temporary workers, along with provisions to convert temporary workers to permanent status after three months of work.
It also proposed restoring the traditional cost-of-living allowances (COLA) and would cut the time it takes to earn the top wage by more than 50%.
"There's no doubt our UAW workforce put us on their shoulders during the pandemic, and these same workers and their families were hit hard by inflation,” CEO Jim Farley said in a statement.
"We've put an offer on the table that will be costly for the company, especially given our large American footprint and UAW workforce, but one that we believe still allows Ford to invest in the future," he added.
Ford also said it has received two counteroffers from the UAW, which is currently striking all three Detroit automakers, also including General Motors Company (NYSE:GM) and Stellantis NV (NYSE:STLA, EPA:STLA). The UAW originally proposed a 40% pay increase.
The offer marks progress from Monday, when Ford furloughed a total of 330 workers at its Chicago Stamping and Lima, Ohio Engine plants. That cam after the union began striking Ford’s Chicago Assembly plant in Illinois, which produces the Ford Explorer and Lincoln Aviator SUVs.
Meanwhile, Ford also revealed that its third-quarter US sales jumped nearly 8% Wednesday morning.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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