According to sources quoted by American Automotive News, approximately 80% of Ford's cars are produced domestically in the United States, and compared to General Motors and Stellantis, Ford's annual labor cost disadvantage is $1 billion.

　　Image source: Ford

　　Ford employs approximately 57000 union workers in the United States, approximately 11000 more than General Motors and 16500 more than Stellantis. Since signing the current contract with the UAW in 2019, Ford has converted approximately 14100 temporary workers to regular workers, 5600 more than promised.

　　It is reported that the contract signed between Ford and the union requires that temporary workers should not exceed 8% of their total hourly labor, while the current Ford ratio is 3%, which is significantly lower than General Motors and Stellantis.

　　In addition, Ford's investment in the United States is $1.4 billion more than the planned investment in the current four-year agreement.

　　On July 14th, a new round of negotiations between Ford and the union will officially begin, and Ford hopes to continue working on the basis of its commitment to employment and investment in the United States. But in the process of transitioning to electric vehicles, the company is also seeking ways to manage costs and maintain production flexibility.

　　Compared to foreign automakers that hire non union workers, Ford's labor costs are about $9 more per hour. The company revealed that the average salary and welfare expenses per hourly worker are $112000.

　　At the same time, the United Auto Workers of America will strive for significant salary increases and additional benefits for its members. Union Chairman Shawn Fain believes that Ford, General Motors, and Stellantis can afford the union's demands after achieving record profits in recent years.

　　Fain once said that he would promote the restoration of the Cost of living subsidy that was cancelled during the 2008-2009 recession, and end the hierarchical wage system, under which it usually takes several years for workers to reach the Maximum wage of about $32 per hour.

　　Sources said that when Ford's current contract with the labor union expires in September, about 80% of its hourly workers will receive the Maximum wage.