Key Points
- đ Ford CEO Jim Farley expressed concerns about the UAW (United Auto Workers) proposal potentially leading to Ford’s bankruptcy.
- đ° The UAW’s demands include restoring defined benefit pensions, implementing a four-day workweek, and seeking a mid-30% raise for its members.
- đ¸ Farley explained that accepting the UAW’s demands would have caused Ford to lose $15 billion and go bankrupt, with employees potentially earning nearly $300,000 fully fringed for a four-day workweek.
- đ Farley stated that Ford submitted an alternative proposal but had received no response from the UAW.
- đź Farley’s interview prompted the UAW to highlight his $21 million earnings last year.
As the Big Three automakers barrel towards a potential stake from the United Auto Workers (UAW) union, Ford CEO Jim Farley has shared his sentiments about the matter. During a conversation with CNBC Overtime, a seemingly exasperated Farley stated that the UAWâs demands would have resulted in Ford going bankrupt.Â
The UAWâs demands include the restoration of defined benefit pensions for all workers, a four-day workweek, and a mid-30% raise, among others, as per a report from The Wall Street Journal. The UAW had initially targeted a 40% increase in wages for its members, as it matched the average salary hike that Detroit automotive executives received over the past four years.
In an interview with CNBC, Farley noted that the UAW is actually not negotiating with Ford, even as the unionâs deadline is approaching. The executive also warned that pushing through with the unionâs demands would have resulted in Ford going bankrupt.
âIf we signed up for the UAWâs request, instead of making money and distributing $75,000 in profit sharing in the last 10 years, we would have lost $15 billion and gone bankrupt by now. The average pay would be nearly $300,000 fully fringed for a four-day workweek â per employee,â Farley said, noting that with such a system, UAW workers would make as much as six times more than fully tenured teachers, military members, and firefighters.
âThereâs no way we can be sustainable as a company. Thatâs why we put our proposal in two weeks ago to say, âLook, you want us to choose bankruptcy over supporting our workers?â Hereâs our proposal. Letâs work through this. Weâve heard nothing,â Farley said.
In response to Farleyâs interview, the UAW simply noted on X, the social media platform previously known as Twitter, that the executive made $21 million last year.
Watch Jim Farleyâs interview with CNBC in the video below.