agent Entrepreneur logo
MenuMENU
SearchSEARCH

Ford Executive Indicates Desire for Level Playing Field on Labor Costs

Ford Motor Co’s Americas chief indicated on Wednesday that the No. 2 U.S. automaker will be looking to bring its labor costs in line with those of its smaller rival Fiat Chrysler Automobiles when it opens talks this summer with the union representing its hourly workers, reported Reuters. Joe Hinrichs, speaking at a Bank of ... Read More »

April 6, 2015
2 min to read


Ford Motor Co’s Americas chief indicated on Wednesday that the No. 2 U.S. automaker will be looking to bring its labor costs in line with those of its smaller rival Fiat Chrysler Automobiles when it opens talks this summer with the union representing its hourly workers, reported Reuters.

Joe Hinrichs, speaking at a Bank of America Merrill Lynch conference, said the subject of entry-level workers, who are paid less than their veteran co-workers, will be a subject of talks with the United Auto Workers. Ford, Fiat Chrysler and General Motors Co will negotiate new deals to replace ones expiring in mid-September.

Ad Loading...

Hinrichs, who declined to discuss the pending talks in detail, said Ford needs to remain competitive in order to maintain its investment in U.S. plants, and pointed to the UAW’s desire for a deal that is similar at all three automakers in helping Ford lessen the advantages Fiat Chrysler gained during its 2009 bankruptcy.

As part of the bankruptcy reorganizations at GM and FCA, the UAW agreed to no cap on the number of entry-level workers those automakers could hire, while Ford, which did not enter bankruptcy, has a limit.

“Ideally, some of those discrepancies that exist because of the bankruptcies at two of our competitors will play themselves out as part of that pattern bargaining process,” said Hinrichs, who added the talks would be a “delicate balance.”

Asked what Hinrichs meant, a Ford spokeswoman said, “We need to have a total labor cost that is competitive with other automotive manufacturers producing in the U.S. We’re open to discussing many options with our UAW partners.”

Entry-level workers earn about $16 to $19 an hour compared with veteran workers, who make up to $28.50 an hour. Twenty-eight percent of Ford’s hourly U.S. workforce are entry level, while GM is at 19 percent and FCA is at 43 percent.

Ad Loading...

UAW leaders have said they want to bridge the gap between the entry-level and veteran workers’ pay.

Labor cost estimates show that Ford pays its workers an average of $57 an hour, including benefits, compared with $58 at GM and $48 at FCA, according to the Center for Automotive Research.

“There’s certainly an understanding that for the investment levels to continue and the great job growth numbers that we’ve had in the U.S. to continue, we have to maintain a level of competitiveness that makes sense,” Hinrichs said.

More Industry

Photo of two men in suit jackets shaking hands next to new car inside of a dealership
IndustryApril 23, 2026

A New Consumer Culture in the Auto Dealership

Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.

Read More →
Closeup of the side of an Audi car
Industryby Hannah MitchellApril 23, 2026

New-Vehicle Sales Down

A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.

Read More →
Photo of Cadillac Lyriq SUV on road with partly cloudy sky in background
Industryby Hannah MitchellApril 16, 2026

Used Autos Selling for More

A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.

Read More →
Ad Loading...
Photo of facade of Waldorf Toyota car dealership
Industryby Hannah MitchellApril 16, 2026

Maryland Auto Group Sells

A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.

Read More →
Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
electric vehicle next to an urban charging station. EV Demand Diverges. F&I and Showroom logo
Industryby Lauren LawrenceApril 10, 2026

EV Interest Varies Regionally

U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.

Read More →
Ad Loading...
Photo of the rear of a Mercedes GLC 400 electric SUV with a skyline in the background
Industryby Hannah MitchellApril 10, 2026

Brands Weighed on Projected Recalls

Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo of several cars on lifts in a service center
Industryby Hannah MitchellApril 9, 2026

Franchised Dealers Stand to Gain Service Business

Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.

Read More →
Ad Loading...
Photo of office desk with open laptop on it and an empty chair next to it
IndustryApril 9, 2026

What Matters Most in Building Your Agency

The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.

Read More →