Ford Says New UAW Contract Boosts Labor Costs Less Than 1%
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Ford Motor Co.’s new contract with the United Auto Workers will increase its labor costs less than 1 percent annually while allowing the company to offset that in efficiency gains, the company said.
Ford’s hourly labor costs, including wages and benefits will rise to $59 from $58, Marty Mulloy, chief labor negotiator of Dearborn, Michigan-based Ford, said in an interview. The company will deploy workers more productively in team-based systems, he said. Ford has estimated Toyota Motor Corp. pays $50 an hour in wages and benefits to its U.S. workers.