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| ford workers |
On Wednesday evening, a hopeful tentative labour deal with Ford Motor Company was revealed. If the agreement is approved by Ford employees, it will be a big triumph for automotive workers, potentially putting them ahead of average college graduate salaries by $24,000 per year.
While General Motors and Stellantis continue on strike, Ford appears to be on the verge of resuming operations, with the proposed deal promising considerable pay raises for Ford employees:
If the agreement is approved, Ford employees would receive an immediate 11 percent salary rise, which will climb to a total of 25 percent over the course of the four-and-a-half-year contract. Those in the highest income group may expect a rise with an increase more than 30%, sending their compensation over the $40 per hour level to $83,200 per year.
New hires at Ford may expect a 68 percent rise in beginning pay, with an hourly rate of more than $28 ($58,240 annually). The agreement's crown gem, however, is the modification anticipated for Ford's lowest salary staff. Low-wage employees may anticipate their pay to increase by 150 percent over the course of the contract.
In addition, many of the benefits that were cut during the Great Recession, such as cost-of-living allowances and three-year pay progression, are being reinstated.
All of this takes place against the backdrop of recent college grads who find themselves in a unique situation. While a college degree normally guarantees better weekly wages than a high school diploma, the profitability of the job varies depending on specialisation. According to Bankrate data from September, the typical college graduate's beginning wage is $58,862.
A college graduate's income falls short by $622 when compared to the predicted earnings of a new Ford employee.
While some college degrees, such as electrical engineering and aerospace engineering, have median salaries in excess of $100,000, others, such as early childhood education and fine arts, fall short of the lofty heights attained by Ford employees.
However, it is critical to place the gap in perspective. Ford's prospective accord is about more than simply money; it's about industry power dynamics. The UAW's strategic strikes were a watershed moment in the negotiations, propelling them forward. Marick Masters, a Wayne State University professor, expressed confidence to the Detroit Free Press, hoping for similar deals with other corporations.
The contract's ramifications may probably reshape labour movements and pay expectations in America. As sectors change, so does our perception of what a "fair wage" is.
