DEARBORN — United Auto Workers and Ford Motor Company leaders on Thursday announced plans to add more than 6,200 new U.S. manufacturing jobs in the Midwest, convert nearly 3,000 temporary UAW-Ford workers to permanent full-time status and provide all hourly employees healthcare benefits on the first day of employment.
These actions – which come more than a year ahead of 2023 contract negotiations – 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.
Supported by $3.7 billion of investments in manufacturing facilities across Ohio, Michigan and Missouri, the new UAW-Ford manufacturing jobs are expected to result in the creation of an estimated 74,000 additional indirect non-Ford jobs nationally, based on a 2020 study by BCG on the economic impact of F-Series production.
“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.”
These actions come a year after the company detailed its Ford+ plan to transform its global automotive business, accelerating the development and scaling of breakthrough electric, connected vehicles, while leveraging iconic nameplates to strengthen operating performance and take full advantage of engineering and industrial capabilities.
The UAW and Ford broke with convention by not waiting until formal UAW contract negotiations to announce new vehicles, plant investments and workplace improvements to continue scaling operations to deliver on customer demand. The current UAW contract expires in 2023.
“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.”
Ford plans to invest $1 billion over the next five years to continuously improve the workplace experience for manufacturing employees. As a result of discussions with the UAW, Ford is taking steps to identify and address the top wants and needs of employees. Potential enhancements include better access to healthy food, new EV chargers in plant parking lots, better lighting in parking lots and more. While improvements will differ by plant, this is the first phase of workplace changes, with more to come.
“In many ways, Ford is America’s automaker and our relationship with the UAW is essential to our success,” said Kumar Galhotra, president, Ford Blue. “Our frontline manufacturing employees are the key to delivering what our customers want more of – amazing new electric vehicles like the F-150 Lightning as well as must-have internal combustion-powered vehicles like the forthcoming all-new Mustang coupe.”
“This announcement is a testament to UAW members who contribute their skill, experience and knowledge to the success of Ford Motor Company,” said UAW President Ray Curry. “We are always advocating to employers and legislators that union jobs are worth the investment. Ford stepped up to the plate by adding these jobs and converting 3,000 UAW members to permanent, full-time status with benefits.”
“The essential necessity of quality healthcare and full-time employment are longstanding principles that have been communicated to the company by the UAW International Union and our UAW local unions since our inception,” said Chuck Browning, UAW vice president and director, Ford Department. “I applaud the actions of Ford Motor Company to address these issues outside the realm of collective bargaining. These unprecedented steps taken by Bill Ford and CEO Jim Farley are both a refreshing and innovative approach to labor relations that delivers great benefit when most needed by our hardworking members.”
The $3.7 billion investment and more than 6,200 new union jobs announced today spans three states and includes:
- Michigan: $2 billion investment and 3,200 union jobs including the creation of nearly 2,000 jobs throughout three assembly plants in Michigan to increase production of the all-new F-150 Lightning electric truck to 150,000 per year at Rouge Electric Vehicle Center in Dearborn, produce an all-new Ranger pickup at Michigan Assembly Plant in Wayne and an all-new Mustang coupe at Flat Rock Assembly Plant. The investment also includes $35 million to build an all-new Ford Customer Service Division packaging facility in Monroe that will create more than 600 union jobs, with operations expected to begin in 2024 to help accelerate parts shipments for Ford customers
- Ohio: $1.5 billion investment and 1,800 union jobs at Ohio Assembly Plant to assemble an all-new EV commercial vehicle starting mid-decade, along with an additional 90 jobs and $100 million investment between Lima Engine and Sharonville Transmission plants
- Missouri: $95 million investment and 1,100 union jobs for a third shift at Kansas City Assembly Plant to increase production of the Transit, America’s best-selling commercial van, and the all-new E-Transit electric van
Michigan has been home to Ford since its founding in 1903, and with today’s announcement, Ford is deepening its commitment to the state. Since 2016, Ford has invested nearly $10 billion in Michigan and created or retained more than 10,000 jobs. This includes refurbishing Michigan Central Station, developing a new Ford Research and Engineering campus in Dearborn, creating Ford’s Ion Park in Romulus and more.
“We are thrilled that Ford is advancing its long legacy in Michigan by investing $2 billion to create 3,200 good-paying UAW jobs,” said Michigan Governor Gretchen Whitmer. “I am proud that we came together to deliver economic development legislation that has helped us land huge projects creating thousands of jobs. With this announcement, Michigan has added nearly 25,000 auto jobs since I took office, and we continue to lead the future of mobility and electrification. Let’s continue in this spirit of collaboration to keep growing our economy, creating jobs, and advancing the future of mobility and electrification.”
Ohio has held a key role in Ford’s history for 70 years. Ford currently has 7,000 employees in the state. Ohio Assembly Plant, where the new commercial electric vehicle will be assembled, currently produces E-Series vans, medium duty trucks and Super Duty chassis cabs.
“The ingenuity and talent of Ohio’s automotive workforce is second to none, and Ford’s investment in Avon Lake will play an essential role in growing the EV space,” said Ohio Governor Mike DeWine. “Ford has been a partner in Ohio for generations, and its confidence in the Ford Ohio Assembly Plant operations secures EV operations in Lorain County that will be critical for decades to come.”
Ford currently has more than 7,000 employees at its Kansas City, Mo., plant. In addition to the Transit and E-Transit vans, Kansas City Assembly Plant also produces the F-150 pickup.
“Today’s announcement is great news for our state. For more than 70 years, hardworking Missourians have assembled iconic Ford vehicles, said Missouri Governor Michael Parson. “Now, these 1,100 new hourly jobs at the Kansas City Assembly Plant will increase production of the Transit and E-Transit commercial vans, driving Missouri’s economy forward.” Today’s announcement is in addition to the approximately 11,000 new jobs Ford announced in September 2021 with its partner SK On as part of a joint $11.4 billion investment to create BlueOval City in Stanton, Tenn., and BlueOval SK Battery Park in Glendale, Ky.