By Michael Elkins
Ford (NYSE:F), along with the United Auto Workers Union, today announced plans to add more than 6,200 new U.S. manufacturing jobs in Michigan, Ohio, and Missouri as part of a $3.7 billion investment. They also announced that they will be converting nearly 3,000 temporary UAW workers to full-time employees and provide all hourly employees with healthcare benefits on day one.
"We've been working very closely with the UAW leadership on this," said Kumar Galhotra, president of Ford Blue.
These actions are part of the company’s Ford+ growth strategy and include plans for an all-new global Mustang coupe and Ranger pickup for North America, as well as an all-new electric commercial vehicle for Ford Pro customers.
"Contractually, we don't have to do this, but we think it's the right thing to do," Galhotra said. "We believe and the UAW leadership believes that this is the right thing to do for those employees." These actions come nearly a year ahead of the union’s contract negotiations in 2023.
“Ford is America’s Number 1 employer of hourly autoworkers, and this investment only deepens our commitment to building great new vehicles – from an all-new Mustang to new EVs – right here in the U.S. in partnership with the UAW,” said Bill Ford, executive chair of Ford. “I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor.”
Ford also said that it will invest $1 billion over five years to improve the "work experience" of its U.S. employees based on feedback from the UAW — offering better access to healthy food, better security and lighting in parking lots, better break facilities and new on-site charging stations for electric vehicles driven by employees.
“We’re investing in American jobs and our employees to build a new generation of incredible Ford vehicles and continue our Ford+ transformation,” said Ford President and CEO Jim Farley. “Transforming our company for the next era of American manufacturing requires new ways of working, and together with UAW leadership, we are leading the way and moving fast to make improvements to benefits for our hourly employees and working conditions for our factory teams.”