Ford CEO Jim Farley said the carmaker has turned temporary workers into full-time employees after learning that some younger staff were working second jobs at Amazon just to survive. Speaking at the Aspen Ideas Festival, Farley said the move echoes founder Henry Ford\u2019s historic 1914 wage increase to $5 a day, which helped birth the American middle class.<\/p>\n\n\n\n
\u201cSome of our young people were working at Amazon before clocking in for seven-hour shifts at Ford,\u201d Farley explained during a conversation with author Walter Isaacson. \u201cThey were sleeping three or four hours a night. That\u2019s not sustainable.\u201d<\/p>\n\n\n\n
Farley said the company\u2019s decision to make temp workers eligible for higher wages, profit-sharing, and improved healthcare came from feedback during union negotiations with the United Auto Workers (UAW). A clause in the 2019 UAW contract allows temps to become full-time after two years of continuous service. He acknowledged the transition was costly but necessary.<\/p>\n\n\n\n
\u201cIt wasn\u2019t easy. It was expensive,\u201d Farley said. \u201cBut these are the changes we need in this country.\u201d<\/p>\n\n\n\n
He added that Henry Ford\u2019s original wage hike wasn\u2019t just goodwill, but a business move. \u201cHe said, \u2018If my factory workers make enough, they\u2019ll buy my cars.\u2019 It\u2019s a self-fulfilling prophecy.\u201d<\/p>\n\n\n\n
Farley, an advocate for U.S. manufacturing, highlighted the urgent need for stronger trade education and workforce development. \u201cYou go to Germany, every factory worker has an apprentice starting in junior high,\u201d he said. \u201cWe need similar programs here.\u201d<\/p>\n\n\n\n
Despite an expected 3.8 million new manufacturing jobs by 2033, younger generations continue to avoid the sector. A 2023 study by Soter Analytics cited low wages as the top reason. U.S. manufacturing workers currently average $25 per hour, or $51,890 annually, well below the national average salary of $66,600.<\/p>\n\n\n\n
In 2023, over 16,000 Ford employees joined a wider UAW strike demanding better pay and conditions. The final contract deal reduced the time required for temp workers to become permanent, a key issue in the dispute. Farley called the strike \u201ccompletely unnecessary\u201d from management\u2019s perspective and stressed that wage reform must go beyond Ford.<\/p>\n\n\n\n
\u201cWe\u2019re not just going to hope it gets better,\u201d he said. \u201cWe have the resources and the know-how after 120 years to solve these problems, but we need help from others, too.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"