Ford CEO Farley Calls Upon UAW To Negotiate A Deal Before Strike Deadline

Ford Motor Co F is on the precipice of facing one of the largest strikes in its history, as CEO Jim Farley expressed frustration over the lack of counteroffers from the United Auto Workers (UAW) union ahead of the imminent strike deadline tonight at 11:59 p.m.

Farley said the automaker has been trying to be in active negotiations with the UAW for the past two weeks, and despite presenting its most recent proposal, there has been no reciprocation from the UAW.

"In 80 years, we've always been able to work through these differences... But somehow when we get to these marquee money issues, everything stops," Farley commented in a CNBC interview.

The context of the dispute draws from UAW's increasing demands, surging automaker profits versus the stagnation of worker wages.

UAW President Shawn Fain said Wednesday that in the past four years, the profits of the “Big Three” automakers — Ford, General Motors Co GM, and Stellantis NV STLA — rose by 65%, while auto worker wages only increased by 6%. Fain argued, “If they have money for Wall Street, they sure as hell have money for the workers who make the product.”

Among the demands, UAW is advocating for a 46% wage hike over a four-year period, a restoration of pensions, a reduced workweek to 32 hours, and the abolishment of the tier system. While there has been some conciliation from the automakers, many of the UAW's core demands remain unaddressed.

For instance, the wage hike proposal from UAW was met with counteroffers ranging from 17.5% to 20% over different timelines.

Ford's most recent offer includes a cost-of-living adjustment bonus totaling $12,000 over four years and a $5,500 ratification bonus for both permanent and temporary employees. It would potentially elevate the average wages for Ford's UAW-represented hourly workers from $78,000 in 2022 to $92,000 in the first year of the contract.

Despite his earnest candor in the CNBC interview, Farley remains focused. "We're prepared... We still have a few hours to go. Let's go. Let's get a historic deal done," he said.

The broader stakes here are palpable. Fain on Wednesday announced a strategy termed the "stand up strike" that could disrupt operations across the Big 3 automakers. The targeted approach, set to start at key locations and potentially expand, underlined the union's intent to exert maximum pressure while ensuring a just agreement is reached.

The stakes are high for both sides, especially with electric vehicle production being a significant concern for automakers. 

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Photo: Farley, courtesy Ford; UAW, Shutterstock