Ford to promote newer UAW workers to top wage scale

Article by Christian Andrei, on February 5, 2015

Ford Motor Co. will promote 55 workers recruited in 2010 to its top wage scale after surpassing the cap on employees earning second-tier wages. These 55 workers were hired from February through June 2010 and are based at the carmaker’s sites in Kansas City, Louisville and Chicago, according to a seniority report posted online by the United Auto Workers union.

In a statement, UAW President Dennis Williams said the workers sacrificed and saved not just an industry, but the American economy.” Ford’s contract with the union requires the carmaker to promote workers – according to the date of their hiring – once it exceeds the maximum number of employees lurking on the second-tier pay scale.

The promotion means that these “entry level” workers would start earning around $28 per hour, from the current rate of about $19 an hour. These workers, however, would still receive lesser benefits than their counterparts hired in 2007 or earlier.

Kristin Dziczek, director of the industry and labor group at the Center for Automotive Research, remarked that means those 55 workers would cost Ford each between $6 and $7 an hour less than a top-tier worker.

Dziczek noted that entry level was set up to have a ladder to the top-tier wage. Automotive News recently reported that the carmaker was only 69 second-tier workers short of reaching the cap. Over 14,200 of Ford’s around 50,400 workers currently earn second-tier wages.

Topics: ford, uaw

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