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Ford sweetens United Auto Workers contract proposal in attempt to avoid strike

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UAW contract negotiators met at Ford World Headquarters in Dearborn on Thursday afternoon to discuss a counter-proposal and Ford put a better offer on the table, the Detroit Free Press has learned. Improvements to the original proposal focused on "key economic" areas: Wages, COLA (cost-of-living adjustments) and contract ratification bonuses, people familiar with the talks said. UAW President Shawn Fain went to Ford on Thursday to join the discussion. He was planning to spend time this week and next at Ford, a union source confirmed to the Free Press. The situation is "obviously very fluid," said the source, who isn't authorized to speak publicly on the talks. Ford is working to reach a deal before the 11:59 p.m. Sept. 14 deadline with the United Automobile, Aerospace and Agricultural Implement Workers of America, known universally as the United Auto Workers, under intense pressure to avoid a labor strike. The initial proposal Ford put forth Aug. 29 and first discussed publicly by the UAW Aug. 31 included: Fain said during a Facebook live member update Aug. 31 that the Ford proposal "insults our very worth." In recent days, negotiators have begun arriving at Ford in Dearborn as early as 6 a.m. and stay sometimes as late as 8 p.m., sources with knowledge of the situation told the Detroit Free Press. Members of the UAW bargaining team, led by UAW Vice President Chuck Browning, are easily noticed in their red union shirts, gathered in subcommittees on the second floor of the Glass House. Meanwhile, Ford CEO Jim Farley and Executive Chair Bill Ford are directly involved in strategy updates, impromptu meetings, scheduled briefings and text streams throughout the day and night, a source with firsthand knowledge but not authorized to discuss publicly told the Free Press. The 120-year-old automaker sees itself as more invested in hourly workers than competitors since Ford employs more hourly workers in the U.S. than General Motors or Stellantis, which builds Jeep and Ram and Dodge and Chrysler vehicles. GM and Stellantis do save money on labor by building significantly more trucks and SUVs in Mexico. But Ford executives have said employing American labor is part of the company's commitment to America and its communities. Ford builds the Mustang Mach-E and Maverick in Mexico but far fewer vehicles than competitors. All bestselling F-Series trucks are built in the U.S. and an estimated 80% of its vehicles overall are sold stateside, Ford emphasizes often. Now the company is running TV ads to reinforce its messages. Ford has implemented promotions before it was required to do so by contract, like promoting 3,000 temporary workers to fulltime in 2022 when no one was talking about a strike. "Ford has bet on the UAW more than any other company. That's just a fact. That's our values as an American company," Mark Truby, Ford chief communications officer, told the Free Press. "We do things the right way. So we will work around the clock to try to reach a deal that works for our employees, who deserve a good quality of life, but also allows Ford to invest and grow." Meanwhile, the UAW reported GM and Stellantis to the National Labor Relations Board on Aug. 31 for bad faith negotiating. And when GM submitted its proposal Thursday, Fain called it "insulting." Ford hopes its UAW track record and a sweeter contract deal will pay dividends with the tough-talking union president. "Ford's commitment to the UAW has come with a significant cost versus our competition over the years," Truby said. "Hopefully we have built enough trust to reach a fair deal that works for all. That's our focus." The UAW did not respond to a request for comment Friday morning. Fain is scheduled to provide a contract negotiations update to UAW members on Facebook live at 5 p.m. Friday. The automaker points to its 2019 contract and actions over the past four years as evidence of commitment and good faith. Ford spokeswoman Jessica Enoch offered these highlights to the Free Press: Analysts say these negotiations are unlike anything from the near past and Ford can't assume anything. Industry observers note that autoworkers, like much of America, feel threatened financially. And the UAW seems to be on a bigger mission now. 'Overflowing with the bull----': UAW's Fain cranks up profanities amid Detroit 3 talks Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told the Free Press, "Fain has already painted the Detroit Three as the enemy ...That's the hand these companies were dealt." It's a difficult balancing act for companies trying to improve shareholder value through revenue generation and cost cutting, Fiorani said. "The union sees themselves as the only ones taking the brunt of this issue. There's no black and white solution to this issue, there's a lot of gray. People need a fair wage but the Detroit Three need to remain competitive, forcing both sides to compromise to get to an answer."

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